US and Iranian negotiators have reportedly reached a draft 60-day memorandum of understanding to end the three-month conflict, though the proposed agreement still requires approval from Donald Trump.
If approved, the framework would represent the most significant diplomatic breakthrough since hostilities began following US and Israeli strikes on Iran earlier this year.
According to reports, Trump has asked for several days to consider the proposal before making a final decision.
Under the reported terms, the Strait of Hormuz would reopen fully to commercial shipping, with Iran agreeing not to impose tolls or interfere with international vessels transiting the waterway.
Tehran would also reportedly remove naval mines within 30 days, while the US would lift its naval blockade in the region.
The draft agreement is also said to include an Iranian commitment not to pursue nuclear weapons development, with early negotiations expected to focus on the future handling of Iran’s stockpile of highly enriched uranium.
As part of broader discussions, Washington would reportedly negotiate phased sanctions relief alongside the release of frozen Iranian assets as part of a longer-term settlement framework.
Financial markets have been closely watching developments given the importance of Hormuz to global energy supplies. Any sustained reopening of the strait could significantly ease pressure on oil markets after months of disruption and elevated prices.
