US and Iran Edge Toward Temporary Agreement to Halt Conflict
The United States and Iran are reportedly moving closer to a limited, temporary agreement aimed at halting ongoing hostilities, according to sources and officials. This draft framework would cease fighting while leaving several contentious issues unresolved, highlighting the complexities of negotiations between the two nations.
Framework for a Temporary Agreement
The emerging plan focuses on a short-term memorandum rather than a comprehensive peace deal. This approach underscores the significant divisions that remain between the two sides, indicating that any agreement at this stage would serve as an interim measure.
Market reactions have already begun to reflect optimism surrounding the potential deal, with Asian stocks reaching record highs and oil prices experiencing notable declines amid expectations of reduced supply disruptions.
Both Tehran and Washington have adjusted their expectations, moving away from aspirations for a sweeping settlement. Key differences persist, particularly regarding Iran’s nuclear program, including the status of its highly enriched uranium stockpiles and the duration of any nuclear work suspension.
Instead of pursuing a broad agreement, the focus has shifted toward a temporary arrangement designed to prevent a return to conflict and stabilize shipping through the Strait of Hormuz. A senior Pakistani official involved in mediation efforts stated that the priority is for both sides to announce a permanent end to the war, with other issues to be addressed in future direct talks.
Proposed Stages of the Agreement
The proposed framework is expected to unfold in three stages: formally ending the war, addressing the crisis in the Strait of Hormuz, and initiating a 30-day window for negotiations on a more comprehensive agreement. Sources indicate that a one-page memorandum to formally conclude the conflict is nearing completion, although significant gaps remain between the parties.
US President Donald Trump has expressed optimism regarding the potential for a breakthrough. He stated, “They want to make a deal… it’s very possible,” adding that the situation could resolve quickly.
Skepticism from Iranian Officials
Despite the optimism from the US side, Iranian officials have expressed skepticism about the proposed agreement. A spokesperson for Iran’s foreign ministry indicated that Tehran would respond in due course, while lawmaker Ebrahim Rezaei characterized the proposal as “more of an American wish-list than a reality.”
Iran’s parliament speaker, Mohammad Baqer Qalibaf, appeared to mock suggestions that the two sides were close to an agreement, referring to the negotiations as US spin following its failure to reopen the Strait of Hormuz.
Market Reactions to Potential Deal
Reports of a possible agreement have led to significant fluctuations in global oil prices, with benchmark Brent crude futures dropping approximately 11 percent to around $98 a barrel before rebounding above $100 and settling around $99. Additionally, global share prices surged, and bond yields fell, reflecting market optimism about the potential end of a conflict that has disrupted energy supplies.
Takamasa Ikeda, a senior portfolio manager at GCI Asset Management, noted that while the details of the US-Iran peace proposals are limited, there is a prevailing expectation in the market that further military action will be avoided.
Ongoing Military Tensions
On Tuesday, Trump paused a naval mission aimed at reopening the blockaded Strait of Hormuz, citing progress in negotiations. Meanwhile, the US military has maintained its blockade on Iranian vessels in the region. US Central Command reported that forces fired upon an unladen Iranian-flagged tanker on Wednesday, disabling the vessel as it attempted to navigate toward an Iranian port in violation of the blockade.
Unresolved Key Demands
Even if an agreement is reached, the memorandum would leave several fundamental disputes unaddressed. Sources familiar with the mediation efforts indicated that negotiations are being led by Trump’s envoy, Steve Witkoff, and his son-in-law, Jared Kushner. Should both sides agree to the preliminary deal, this would initiate a 30-day period for detailed negotiations aimed at reaching a full agreement.
The memorandum reportedly does not address several key demands previously made by Washington, which Iran has rejected. These include restrictions on Iran’s missile program and an end to its support for proxy militias in the Middle East. Furthermore, the memorandum does not mention Iran’s existing stockpile of over 400 kg of near-weapons-grade uranium, which remains a central concern for the US.
As reported by www.arnnewscentre.ae.
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Published on 2026-05-07 06:46:00 • By FAME Delivered News Desk