The White House believes it is close to finalising a one-page, 14-point memorandum of understanding with Iran to end the war, US news outlet Axios reported on Wednesday. Sources said Washington expects Tehran’s response on the key points within the next 48 hours.
A Pakistani source involved in the mediation effort confirmed the development to Reuters. “We will close this very soon. We are getting close,” the source said. Pakistan’s Foreign Minister added that Islamabad was working to ensure the agreement leads to a “permanent end” to the conflict. An Iranian Foreign Ministry spokesperson told CNBC the proposal was being “evaluated.”
The document would declare an end to hostilities and open a 30-day negotiating window for a detailed settlement. Key points include both sides lifting their respective Strait of Hormuz blockades in exchange for the United States removing sanctions and Iran committing to a 15-year moratorium on uranium enrichment, according to Axios.
The MoU is being negotiated by US Special Envoy Steve Witkoff and senior White House adviser Jared Kushner with Iranian officials, both directly and through Pakistani mediation. The reporting comes hours after President Donald Trump on Tuesday paused “Operation Freedom”, the US Navy escort programme through the Strait of Hormuz, citing “great progress” toward an agreement.
Brent crude extended losses for a second day on the deal hopes, falling below $107 per barrel. US benchmark West Texas Intermediate dropped under $100 to $98.55. The strait, which typically carries about a fifth of global oil and gas, has been mostly cut off since the US-Israeli war on Iran began on February 28.
Secretary of State Marco Rubio asked the United Nations to formally call on Iran to lift the mining of the strait and allow humanitarian relief. The blockade on Iranian ports remains in force. Sri Lanka, which absorbed per-barrel premiums of up to $50 above pre-war levels through the closure, would be among the most direct beneficiaries of a settlement that restores normal Hormuz transit.
Mr. Trump paired the offer with an ultimatum on Wednesday, saying that the “already legendary Epic Fury” military operation could come to an end if Iran accepted the terms, and that the strait would then be “open to all, including Iran.” He warned that if Tehran rejects the agreement, “the bombing starts” at “a much higher level and intensity than before.”
