ISLAMABAD — The United States and Iran are closing in on a one-page memorandum of understanding aimed at ending the war and setting the framework for further nuclear negotiations, according to reports confirmed by a Pakistani source involved in the peace efforts.
The source told Reuters that Washington and Tehran were nearing agreement on the proposed memo, confirming earlier reporting by Axios. “We will close this very soon. We are getting close,” the Pakistani source said.
A Pakistani security source familiar with the negotiations told BPI News that officials involved in the process believe they are now “on the cusp” of a breakthrough, although no final agreement has yet been announced.
The White House, the State Department and Iranian officials contacted by BPI News did not immediately respond to requests for comment.
Memo Would Begin 30-Day Negotiation Period
According to Axios, the proposed one-page document contains 14 points and would formally declare an end to the war while opening a 30-day period for detailed negotiations on Iran’s nuclear programme, sanctions relief and transit through the Strait of Hormuz.
Two Pakistani security sources familiar with the negotiations have confirmed to BPI News that what Axios reported is correct but far from close to completion.
The framework is expected to include an Iranian commitment to a moratorium on nuclear enrichment, US agreement to lift sanctions and release billions of dollars in frozen Iranian funds, and steps by both sides to ease restrictions around the Strait of Hormuz.
Axios reported that US officials expect Iran’s response on several key points within the next 48 hours. CNBC quoted an Iranian foreign ministry spokesperson as saying Tehran is evaluating a 14-point US proposal.
Hormuz And Blockade Remain Central To Deal
The Strait of Hormuz has remained one of the most sensitive issues in the talks, with Iranian restrictions on shipping and the US naval blockade of Iran both forming part of the wider dispute.
Axios reported that, under the current draft, restrictions on shipping through the strait and the US blockade would be gradually lifted during the proposed 30-day negotiation period. However, one US official told Axios that if negotiations collapse, US forces would retain the ability to restore the blockade or resume military action.
That caveat means the memo may stop the immediate war, but it would not fully resolve the underlying dispute. Many of the terms would remain dependent on a final agreement, leaving open the possibility of renewed military pressure if talks break down.
Trump Pauses Strait Mission As Markets React
The reports came after President Donald Trump paused “Project Freedom”, the naval mission launched to guide ships through the Strait of Hormuz, citing “great progress” in negotiations with Iran.
Trump said the blockade would remain in force, but that the ship escort mission would be paused temporarily to allow time for the agreement to be finalised.
The prospect of a deal triggered a sharp market reaction, with Reuters reporting that Brent crude futures fell by more than 8% to around $100 a barrel, while global shares rose and bond yields fell on optimism that the conflict could be nearing an end.
Pakistan’s Mediation Role Moves To Centre Stage
Pakistan hosted the only known direct peace talks between the US and Iran last month and has remained active as a mediator, carrying proposals between the two sides.
The latest confirmation from a Pakistani source reinforces Islamabad’s central role in the process, after weeks of security preparations, diplomatic movement and indirect exchanges involving Washington, Tehran and Pakistani officials.
BPI News has previously reported that Pakistani sources familiar with the negotiations believed the process had not collapsed, but had instead moved through a delicate sequence of indirect consultations involving Islamabad, Muscat and Moscow.
With Iran now evaluating the US proposal and Washington expecting a response within 48 hours, the coming days could determine whether the memo becomes the first formal step towards ending the war