Iran says reviewing new US proposal as both sides move closer to deal

ISLAMABAD: Iran said on Wednesday that it is reviewing a new US proposal, as reports suggest Washington and Tehran are moving closer to a preliminary agreement aimed at ending the ongoing conflict in the Gulf region.

According to sources, the two sides are close to finalising a one-page memorandum of understanding that would formally end the war, while leaving complex issues, such as Iran’s nuclear programme, for future negotiations.

An Iranian foreign ministry spokesperson, quoted by state media ISNA, said Iran would soon send its response through Pakistan, which hosted the only round of peace talks and continues to serve as a key communication channel between the two sides.

US President Donald Trump, in a social media post, did not provide details of the proposal but said the war could end if Iran agrees to previously discussed terms. He later told the New York Post that it was too early to hold direct face-to-face talks.

Sources involved in the mediation said the proposed 14-point memorandum would include steps to end the conflict, reopen the Strait of Hormuz for shipping, ease US sanctions on Iran, and begin discussions on nuclear restrictions.

A Pakistani source confirmed that both sides are “very close” to an agreement, saying: “We will close this very soon.”

The reports triggered a sharp reaction in global markets, with Brent crude falling around 11 per cent to nearly $98 per barrel. Global stock markets surged while bond yields declined amid optimism over a possible end to the conflict.

Trump also warned that if Iran rejects the deal, military action could escalate further, stating that “the bombing starts” if no agreement is reached.

Iran’s Revolutionary Guards said that if US “threats” end, safe passage through the Strait of Hormuz could be restored under new conditions, though no details were provided.

Despite optimism, key issues remain unresolved, including US demands on Iran’s missile programme and regional influence, which Tehran has consistently rejected. Iranian officials continue to insist on a “fair and comprehensive agreement.”