Overview
U.S. President Donald Trump told reporters in the Oval Office that a quick end to the war with Iran was possible, as Tehran considered a U.S. proposal that officials say would formally terminate the conflict while leaving several major U.S. demands unresolved. Iranian spokespeople and lawmakers expressed doubt about the package, and the wider picture remains one of disagreement on critical security issues.
What the proposal would do
According to sources briefed on the mediation effort, the U.S. peace proposal is structured as a one-page memorandum intended to formally bring the fighting to an end. Those same sources said the memorandum would open the door to subsequent negotiations over three central items: resuming shipping through the Strait of Hormuz, lifting U.S. sanctions on Iran and imposing limits on Iran's nuclear programme.
Sources described the memorandum as a preliminary step that would not immediately require concessions from either side. If both parties accepted the outline, the sources said, it would trigger a 30-day period of detailed talks aimed at converting the memorandum into a full agreement.
Statements from U.S. and Iranian officials
Trump said, "They want to make a deal. We’ve had very good talks over the last 24 hours, and it’s very possible that we’ll make a deal," and added, "it’ll be over quickly."
Iranian comments were more guarded. A foreign ministry spokesperson quoted by Iran’s ISNA news agency said Tehran would convey its response to the proposal. Ebrahim Rezaei, a lawmaker who serves as a spokesperson for parliament’s powerful foreign policy and national security committee, dismissed the U.S. proposal as "more of an American wish-list than a reality." Mohammad Baqer Qalibaf, speaker of Iran’s parliament, mocked reports of imminent agreement on social media in English, writing that "Operation Trust Me Bro failed," and described such coverage as U.S. spin following the failure to reopen the Strait of Hormuz.
Mediation and personnel
Sources close to the mediation said the U.S. negotiating team is being led by Steve Witkoff and Jared Kushner. A Pakistani source and another individual briefed on the talks indicated an agreement on the one-page memorandum was close, though Tehran’s formal response was still pending at the time of reporting.
Gaps and omissions in the initial outline
While the memorandum would start talks on shipping, sanctions and nuclear limits, the sources did not indicate inclusion of other significant U.S. demands that Tehran has previously rejected. The sources did not mention provisions addressing Iran’s missile programme, an end to support for proxy militias in the region, or Iran’s existing stockpile of more than 400 kg (882 pounds) of near-weapons-grade uranium.
Military posture and recent actions
Despite the diplomatic movement, military actions continued in the region. U.S. Central Command reported that forces fired on an unladen Iranian-flagged tanker on Wednesday, disabling the vessel as it attempted to sail toward an Iranian port in violation of a U.S.-imposed blockade.
Separately, Trump paused a two-day-old U.S. naval operation intended to reopen the blockaded Strait of Hormuz, citing progress in peace talks. NBC News, citing two unnamed U.S. officials, reported that the pause followed Saudi Arabia’s decision to suspend the U.S. military’s use of a Saudi base for the operation. The report said Saudi officials were surprised and angered by prior U.S. statements that Washington would help escort ships through the strait, and that they told the United States they would deny permission to fly military aircraft out of a Saudi base or through Saudi airspace. The White House did not immediately comment on that account.
The U.S. military, however, has continued to enforce its own blockade on Iranian shipping in the region.
Market reactions
Markets reacted quickly to reports of a possible deal. Global oil prices plunged to two-week lows on Wednesday, with benchmark Brent crude futures dropping roughly 11% to around $98 a barrel at one point, before recovering above $100 a barrel. Global equity indices rose and bond yields fell on growing optimism that further military escalation might be avoided.
"The contents of the U.S.-Iran peace proposals are thin, but there is an expectation in the market that further military action will not take place," said Takamasa Ikeda, a senior portfolio manager at GCI Asset Management.
Next steps and uncertainties
If Tehran formally accepts the one-page memorandum, the sources said, that acceptance would mark the start of a 30-day period for detailed negotiations. The sources emphasized that the memorandum itself would not necessarily resolve deeply contested issues and pointed out significant gaps relative to prior U.S. demands. Iran’s formal reply to the proposal was awaited, and key actors in the region expressed skepticism about prospects for a rapid resolution.
Bottom line
The U.S. proposal, as described by mediation sources, aims to create a framework to end hostilities and open negotiations on shipping, sanctions and nuclear limits. Iranian officials have publicly questioned the plan’s realism, and important U.S. conditions are not mentioned in the initial outline. Markets responded to the possibility of de-escalation, but the coming days will determine whether the memorandum can convert into a comprehensive, enforceable agreement.