US and Iran explore short-term deal to end fighting

Proposal focuses on short-term memorandum

Iran’s Foreign Ministry said it has not yet reached a conclusion on the plan, which is described as a short-term memorandum rather than a comprehensive peace deal, reflecting continued disagreements over key issues, particularly Iran’s nuclear programme.

Three-stage framework under discussion

According to sources, the proposed arrangement would involve ending the war, stabilising the Strait of Hormuz, and initiating a 30-day period of negotiations toward a broader agreement.

Mediation efforts and diplomatic contacts

Pakistan has played a mediating role in discussions, with officials expressing cautious optimism about a potential agreement. Iran and Pakistan have also held diplomatic contacts as part of ongoing efforts.

Mixed signals from Washington and Tehran

US President Donald Trump expressed optimism about reaching a deal, while Iranian officials remain sceptical, describing the proposal as one-sided and insufficient to address core demands from both sides.

Market reaction to possible de-escalation

Reports of a potential agreement contributed to a decline in oil prices and gains in global stock markets, reflecting expectations that supply disruptions could ease if tensions subside.

Ongoing regional and military tensions

Despite diplomatic efforts, sanctions, military activity, and regional confrontations continue, including developments involving Iran-backed groups and ongoing security tensions in the region.

Key issues remain unresolved

Major sticking points remain, including Iran’s nuclear programme, missile capabilities, and regional influence, with the proposed memorandum not addressing several of Washington’s core demands.