Authors: Aliba Shahid, Steve Holland and Alexander Cornwell
ISLAMABAD/WASHINGTON/TEL AVIV, May 6 (Reuters) – The United States and Iran are close to agreeing on a one-page memorandum to end the Gulf War, a source in mediator Pakistan and another source with knowledge of the mediation said.
In an early morning social media post, U.S. President Donald Trump did not reveal the details of any specific proposals but said the war could end if “Iran agrees to deliver on the deal”.
Sources confirmed the information originally reported by US media outlet Axios. The proposed 14-point, one-page memorandum would formally end the war, followed by discussions on unblocking shipping in the Strait of Hormuz, lifting U.S. sanctions on Iran and agreeing to limit Iran’s nuclear program.
“We will end the process very soon. We are very close,” said a source from Pakistan, which has hosted the only peace talks in the war so far and continues to play the role of mediator, passing advice between the two sides.
Reports of a possible deal sent global oil prices tumbling, with benchmark Brent crude futures falling about 11% to around $98 a barrel. Global stock prices also surged and bond yields fell on optimism about an end to wars disrupting energy supplies. [O/R] [MKTS/GLOB]
“Assuming Iran agrees to grant the deal that was reached, and that’s probably a big assumption, the legendary epic fury will end and a highly effective blockade will open the Strait of Hormuz to everyone, including Iran,” Trump said in a morning post.
“If they don’t agree, the bombing will begin, sadly, at a much higher level and intensity than before,” Trump added.
Hours earlier, Trump suspended a three-day naval mission to reopen the blocked strait, citing progress in peace talks.
Iran’s Revolutionary Guard responded by saying that passage through the strait would be possible under new terms it was formulating if the U.S. “threat” ended, but gave no details.
White House, State Department and Iranian officials contacted by Reuters did not immediately respond to requests for comment. U.S. news channel CNBC quoted an Iranian Foreign Ministry spokesman as saying that Tehran was evaluating a 14-point U.S. proposal.
No mention of major U.S. needs
U.S. negotiations are being led by Trump’s special envoy Steve Witkopf and son-in-law Jared Kushner, sources familiar with the mediation said.
Sources said that if the two sides agree on a preliminary agreement, detailed negotiations will begin for 30 days to reach a comprehensive agreement.
Sources said the full deal would include the lifting of U.S. sanctions and the release of frozen Iranian funds, lifting competing Iranian and U.S. blockades of the Strait of Hormuz, and curbs on Iran’s nuclear program, with the aim of seeking a moratorium or moratorium on Iran’s uranium enrichment activities.
While the sources said the memo would not initially require concessions from either side, the sources and Axios did not mention several key demands Washington has made in the past and previously rejected by Iran.
U.S. demands not mentioned include limits on Iran’s missile program and an end to support for proxy militias in the Middle East.
While the sources spoke of Iran’s future suspension of uranium enrichment activities, they did not mention Iran’s current stockpile of more than 400 kilograms (900 pounds) of enriched uranium, which is close to weapons-grade.
Washington had previously asked Iran to abandon the plan before the war was over. Iran has in the past insisted on its right to enrich uranium for peaceful purposes and has denied ever seeking to build an atomic bomb.
Trump suspends strait blockade mission
Earlier, Trump announced the suspension of Project Freedom, the mission he announced two days earlier to guide ships through the blocked strait.
The mission failed to significantly restore traffic in the waterway and triggered a new wave of Iranian attacks on ships in the strait and targets in neighboring countries.
In the latest incident, a French shipping company reported on Wednesday that one of its container ships was hit in the channel the day before and that the injured crew had been evacuated.
In announcing the mission suspension, Trump cited “tremendous progress” in negotiations with Iran but gave no further details.
Trump said last week that he might reject Iran’s latest negotiation offer. Iran’s proposal also contains 14 points and calls for discussions on the nuclear issue to be put on hold until the war ends and the shipping dispute is resolved.
In comments on a visit to China on Wednesday, Iranian Foreign Minister Abbas Araqchi did not mention Trump’s latest comments but said Tehran insisted on a “fair and comprehensive deal.”
The strait has been closed since the end of February
Iran has effectively shut down all shipping except its own since the United States and Israel launched war on February 28. In April, Washington imposed a separate blockade of Iranian ports.
Trump’s liberal plan to use the U.S. Navy to open the strait has failed to convince commercial shipping that it is safe while triggering new attacks from Iran, which says it is expanding its control to include the United Arab Emirates coastline on the far side of the strait.
During the mission, Iranian drones and missiles hit several ships and Emirati targets in and around the strait, including the only major UAE oil port on the coast beyond the strait that allows exports without crossing the port.
(Reporting by Reuters; Writing by Peter Graff; Editing by Alex Richardson)
