Iran reviews proposed US deal as Trump threatens bombing

A fragile diplomatic opening emerged on Wednesday as Iran said it was reviewing a fresh US proposal, after sources indicated Washington and Tehran were nearing a one-page memorandum that could halt the war in the Gulf while postponing the hardest disputes, including Iran’s nuclear programme.

An Iranian foreign ministry spokesperson, quoted by Iran’s ISNA news agency, said Tehran would soon send its response through Pakistan, the host of the war’s only peace talks and, since then, the main channel for messages between the two sides.

In an early morning post on social media, US President Donald Trump did not spell out any specific offer but suggested the conflict could stop if “Iran agrees to give what has been agreed to”.

He later told the New York Post that it remained too early to think about face-to-face meetings to formally sign a deal.

A Pakistani source and another person briefed on the mediation confirmed details first reported by the US outlet Axios about a proposed 14-point, one-page memorandum that would formally bring the war to an end.

According to the sources, that memorandum would then lead to talks aimed at restoring shipping through the Strait of Hormuz, removing US sanctions on Iran and settling curbs on Iran’s nuclear programme.

“We will close this very soon. We are getting close,” said the source from Pakistan.

The White House, the State Department and Iranian officials approached by Reuters did not immediately reply to requests for comment.

By late afternoon, there was still no public statement from Israel, Washington’s wartime ally, which has urged the United States to maintain a hard line on its demands before any agreement. ⁠

Vessels seen at anchor in the Strait of Hormuz off southern Iran this week

An Israeli source told Reuters that Israel was unaware Mr Trump might be nearing a deal to end the war and was instead bracing for a possible intensification of the fighting.

Reports of a potential agreement sent global oil prices sharply lower, with benchmark Brent crude futures dropping about 11% to roughly $98 a barrel. Share prices surged worldwide and bond yields fell as investors wagered that a war disrupting energy supplies might finally be nearing an end.

In his morning post, Mr Trump said: “Assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption, the already legendary Epic Fury will be at an end, and the highly effective Blockade will allow the Hormuz Strait to be OPEN TO ALL, including Iran.”

“If they don’t agree, the bombing ‌starts, and it will be, sadly, at a much higher level and intensity than it was before,” Mr Trump added.

Hours earlier, Mr Trump had halted a naval mission launched two days ago to reopen the blockaded strait, saying peace efforts were making headway.

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The source briefed on the mediation said the US side in the negotiations was being led by Mr Trump’s envoy Steve ⁠Witkoff and his son-in-law Jared Kushner.

If the preliminary deal won approval from both sides, it would trigger 30 days of detailed negotiations aimed at securing a fuller agreement.

That broader deal, the source said, would cover the lifting of US sanctions and the release of frozen Iranian funds, the removal by both Iran and the United States of rival blockades in the Strait of Hormuz, and limits on Iran’s nuclear programme, with the goal of ⁠a pause or moratorium on Iranian ‌enrichment of uranium.

Although the sources said the memorandum itself would not at first require either side to make concessions, they did not refer to several major US demands raised previously and rejected by Iran, including restrictions on Iran’s missile programme and an end to its backing for proxy militias across the Middle East.

The sources mentioned possible curbs on any future Iranian enrichment of uranium, but made no reference to Iran’s existing stockpile of more than 400kg, already enriched to near weapons grade, which Washington has previously said must be surrendered ⁠to stop the war.

And even if the reported draft appeared to bypass some demands Tehran has rejected before, there were also signs that Iran might still push for more.

Donald Trump yesterday said Iran should ‘wave the white flag of surrender’

Writing on X, Iranian lawmaker Ebrahim Rezaei, a spokesperson ⁠for parliament’s influential foreign policy and national security committee, said the text described by Axios was “more of an American wish-list than a reality”.

“The Americans will not gain anything in a war they are losing that they have not gained in face-to-face negotiations,” he wrote.

Iran’s Foreign Minister Abbas Araqchi, on a visit to China, did not refer directly to Mr Trump’s latest comments but said Tehran was waiting for “a fair and comprehensive agreement”.

Iran’s Tasnim news agency, citing an unidentified source, reported that Tehran still had objections to the U.S. proposal.

Earlier, Mr Trump pointed to “great progress” in negotiations as he announced a pause to “Project Freedom”, the mission unveiled two days earlier to escort ships through the blocked strait.

That mission did not produce any meaningful return of traffic through the waterway, and instead was followed by a fresh wave of Iranian strikes on ships in the strait and on targets in neighbouring countries, especially the United Arab Emirates.

In the latest episode, ‌a French shipping company said one of its container ships had been hit in the strait the previous day, with injured crew members evacuated.