Iran Reviews US Peace Proposal, Deal 'Close'

Tehran is examining an American peace proposal that would formally end the ongoing war while leaving unresolved Washington's core demands to suspend Iran's nuclear program and reopen the Strait of Hormuz, Iranian officials said Wednesday. A Foreign Ministry spokesperson told the Iranian Students' News Agency that the Islamic Republic will convey its response shortly through Pakistan, which hosted the war's only peace talks and has since served as the primary mediation channel between the two sides.

President Donald Trump expressed belief Wednesday that Iran seeks a deal, though he simultaneously stressed he would not allow Tehran any opportunity to acquire a nuclear weapon. "They want to make a deal. We've had very good talks over the last 24 hours, and it's very possible we'll reach an agreement," Trump told reporters at the White House.

Earlier Wednesday, Trump appeared more pessimistic about the prospects for a deal. In a post on Truth Social, he threatened to resume American bombing of Iran and described the likelihood of Tehran accepting the latest US proposal as a "big assumption."

Trump has long touted the possibility of an agreement to end the war that began on February 28, though without success so far. The two sides remain at odds over numerous thorny issues, including Iran's nuclear ambitions and its control of the Strait of Hormuz, which before the war saw a fifth of global oil and gas supplies transit through it.

Proposal Details and Reactions

A Pakistani source and another individual familiar with the talks confirmed the accuracy of a report published earlier by the American news site Axios about the proposed 14-point, single-page memorandum to formally end the war. The two sources said the memorandum would be followed by negotiations to open navigation channels through the Strait of Hormuz, lift US sanctions on Iran, and agree on restrictions for its nuclear program.

It remained unclear how much the memorandum differs from the 14-point plan Iran proposed last week. Iran has not yet responded to the latest American proposal. Ibrahim Rezaei, spokesperson for the Iranian parliament's National Security and Foreign Policy Committee, described the text as "closer to an American wish list than reality."

Parliament Speaker Mohammad Bagher Ghalibaf appeared to mock reports suggesting a rapprochement between the two sides, writing on social media in English that "the 'Trust Me Bro' operation has failed." Ghalibaf added that such reports amount to disinformation by the United States after its failure to open the Strait of Hormuz to navigation.

Market and Negotiation Impact

Reports of a potential deal to end the war drove oil prices sharply lower, with Brent crude futures falling about 11 percent to roughly $98 per barrel before later recovering above the $100 mark. Global stock prices and bond yields also jumped on optimism over ending the war, which has disrupted energy supplies.

On Tuesday, Trump suspended a two-day naval mission called "Project Freedom" aimed at reopening the strait, attributing the decision to progress in peace talks. A source familiar with the mediation efforts said Trump envoy Steve Witkoff and the president's son-in-law Jared Kushner are leading the American negotiations.

The source said that if both sides agree to the initial accord, detailed negotiations would begin over a 30-day period to reach a comprehensive agreement. That comprehensive deal would include Washington lifting sanctions, releasing frozen Iranian funds, and both Tehran and Washington lifting the blockade on the Strait of Hormuz. The agreement would also impose restrictions on Iran's nuclear program, aiming for a temporary halt or freeze of uranium enrichment in Iran.