The proposed accord, details of which were reported by the Saudi-owned broadcaster Al Arabiya, outlines a series of measures aimed at reducing tensions between Washington and Tehran and reinforcing regional stability following months of heightened confrontation.

According to the reported draft, both countries would pledge to abide by international law and the United Nations Charter, underscoring a renewed focus on diplomatic engagement and adherence to established international norms.

A central element of the agreement is the phased easing of U.S. sanctions on Iran. In return, Tehran would be required to fully implement the commitments contained in the accord, Al Arabiya reported.

The draft also includes guarantees for freedom of navigation in the Arabian Gulf, the Strait of Hormuz and the Sea of Oman, waterways that are critical to global energy shipments and international trade.
Both sides would further commit to respecting each other’s sovereignty and territorial integrity and refrain from interference in domestic affairs, according to the reported text.

The agreement contains provisions barring attacks on military, civilian and economic infrastructure, a clause that could help reduce the risk of direct confrontation and disruptions to regional energy markets.
Details regarding Iran’s nuclear programme, a longstanding source of dispute between Tehran and Washington, were not included in the reported draft and remain unclear.

Al Arabiya did not disclose how it obtained the document. Neither U.S. nor Iranian authorities had publicly commented on the reported draft at the time of publication.

The agreement would take effect immediately upon formal announcement by both governments, according to the reported text.

The June 15-17 summit will be held in Évian-les-Bains in southeastern France, with Syrian representation expected to focus on regional trade routes, supply chains and post-war economic reconstruction, according to the sources.

One Syrian official said an invitation for Sharaa was hand-delivered earlier this week to Syrian Finance Minister Yisr Barnieh during G7-related financial meetings in Paris.

The official said Syria’s participation would likely center on the country’s potential role as a “strategic hub for supply chains” following disruptions caused by the closure of the Strait of Hormuz.
Commercial shipping through the critical waterway has been severely affected since the outbreak of the Iran conflict in late February, contributing to volatility in global energy and transport markets.

Syria, seeking to rebuild after a 14-year civil war, has increasingly moved closer to Western governments following shifts in regional diplomacy and gradual easing of sanctions imposed during the rule of former presidents Hafez al-Assad and Bashar al-Assad.

Despite the easing of many restrictions, Syrian officials continue to face challenges attracting foreign investment, restoring banking connectivity and reviving infrastructure damaged during years of conflict.

The invitation signals a significant diplomatic development for Damascus as Western powers reassess Syria’s regional role amid broader geopolitical and economic disruptions linked to the Middle East conflict.

Foreign Ministry spokesman Esmaeil Baqaei said Tehran had conveyed its concerns to the United States and that diplomatic contacts were continuing, although he declined to provide details of the latest exchanges.

Washington and Tehran have traded proposals since fighting began on Feb. 28, with only one direct round of talks held so far under a fragile ceasefire that has been in effect since April 8.

“As we announced yesterday, our concerns were conveyed to the American side,” Baqaei told reporters during a weekly press briefing, adding that negotiations were proceeding “through the Pakistani mediator.”

Baqaei reiterated Iran’s core demands, including the release of Iranian assets frozen overseas and the removal of longstanding US sanctions, saying Tehran’s negotiating team had consistently defended those conditions.

He also insisted that Iran’s request for war reparations remained justified, describing the conflict as “illegal and baseless.”

Iranian state-linked media reports suggested the latest US proposal sought major concessions from Tehran in exchange for limited relief measures.

According to Fars News Agency, Washington presented a five-point framework that included restricting Iran to a single operational nuclear facility and transferring its stockpile of highly enriched uranium to the United States.

The report said the United States had rejected demands to release a substantial share of Iran’s frozen assets and refused compensation for wartime damage. It also said Washington conditioned a full cessation of hostilities on Tehran entering formal peace negotiations.

Separately, Mehr News Agency criticized the US position as seeking concessions unattainable during the conflict itself, warning the demands risked deadlocking negotiations.

Iran’s earlier proposal, submitted last week, called for a complete halt to military operations across the region, including Israeli operations in Lebanon, and demanded an end to a US naval blockade imposed on Iranian ports since April 13.

Tehran also insisted it would maintain control over the Strait of Hormuz, a critical global energy shipping route that Iran has largely restricted since the outbreak of the conflict.

Baqaei said Iran remained prepared for any renewed military escalation if diplomacy failed.

“Assuming Iran agrees to give what has been agreed to the Blockade will allow the Hormuz Strait to be open to all,” Trump said on social media, warning that failure to accept the proposal would result in intensified military action.

The remarks come amid indications that Washington and Tehran are nearing a one-page, 14-point memorandum of understanding aimed at ending the conflict and initiating further negotiations, according to a source familiar with the talks.

The proposed framework would declare an end to the war and launch a 30-day negotiating period to finalize arrangements covering maritime transit through the strait, limits on Iran’s nuclear program, and the lifting of US sanctions.

Iran’s Revolutionary Guards said on Wednesday that safe passage through the Strait of Hormuz would be ensured once US threats subside, adding that new procedures were being implemented for shipping, though no details were provided.The developments follow Trump’s decision to pause “Project Freedom,” a US naval mission intended to escort vessels through the waterway, citing progress in negotiations.

The blockade, however, remains in force.The Strait of Hormuz, a critical oil transit route, has been largely closed to international shipping since late February, when the United States and Israel launched military operations against Iran. The disruption has severely affected global energy flows and heightened geopolitical tensions.

According to sources, the draft memorandum could include provisions for Iran to halt nuclear enrichment activities, while the United States would lift sanctions and release frozen Iranian funds. Both sides would also gradually ease restrictions on shipping during the negotiation period.

The talks involve US envoys and Iranian officials engaging directly and through intermediaries, with Pakistan playing a mediating role, the source said.Despite the diplomatic progress, incidents in the strait have continued.

A French shipping company reported that one of its container vessels was struck in the waterway this week, with injured crew evacuated.Iran’s Foreign Minister Abbas Araghchi, speaking during a visit to China, said Tehran was seeking a “fair and comprehensive agreement” but did not directly address Trump’s latest comments.

The conflict, which began on February 28, has disrupted shipping and triggered repeated strikes on vessels and regional targets, underscoring the strategic importance of the Strait of Hormuz to global trade and energy markets.

A Pakistani source involved in the negotiations said discussions were “on track” for Wednesday, despite earlier indications from Iran that it might not attend. U.S. President Donald Trump could join the talks either in person or virtually if an agreement is reached, the source added.

U.S. Vice President JD Vance is expected to travel to Pakistan for the переговоры, according to media reports, while Iranian officials said Tehran was “positively reviewing” whether to send a delegation, without confirming participation.

The diplomatic push comes as a two-week ceasefire in the conflict, which began on February 28, nears its end. A Pakistani source said the truce is expected to expire late Wednesday U.S. time.Financial markets reacted to signs of renewed diplomacy, with oil prices falling more than $1 and equities rising in early Asian trading amid expectations that talks could resume.

Brent crude traded near $94 a barrel, while U.S. West Texas Intermediate fell below $88.Tensions remain elevated, however, following disputes over the U.S. blockade of Iranian ports and the recent interception of an Iranian vessel.

Tehran condemned the seizure and warned Washington would bear responsibility for any escalation.Iranian officials also reiterated that they would not negotiate under pressure. Senior figures, including Mohammad Bagher Qalibaf, accused Washington of attempting to force concessions through economic and military pressure.

Washington has said it seeks an agreement that would prevent Iran from developing nuclear weapons while stabilizing energy markets. Tehran, for its part, is seeking relief from sanctions and an end to hostilities without compromising its nuclear program.

The strategic importance of the Strait of Hormuz remains central to the negotiations, as the waterway handles a significant share of global oil and gas shipments and has been affected by restrictions imposed during the conflict.

Pakistan, acting as a mediator, has deployed nearly 20,000 security personnel in Islamabad ahead of the potential talks, underscoring the high stakes and security concerns surrounding the negotiations.

Trading volumes of the Iranian currency have reached as much as $6 million a day in Pakistan’s open market, according to the Exchange Companies Association of Pakistan, with demand accelerating after reports of renewed negotiations between Washington and Tehran.

The rally has been fueled in part by Islamabad’s diplomatic outreach, with Asim Munir visiting Iran and Shehbaz Sharif undertaking a regional tour following high-level U.S.-Iran talks hosted in the Pakistani capital. Market participants say these developments have strengthened expectations of a potential breakthrough.

The Iranian riyal has risen by around 50% in Pakistan’s informal market since late February, climbing from about Rs10,000 to Rs15,000 per 10 million riyals after talks began in Islamabad on April 11, ECAP data shows.Small investors are increasingly participating in the trend.

Muhammad Akbar, a chauffeur in Karachi, said he had invested part of his monthly income into the currency, hoping to profit if negotiations succeed. “I have become a millionaire,” he said, referring to the large nominal value of riyals he now holds.Others have built significantly larger positions.

Retail investor Azam Khan said he had accumulated hundreds of millions of riyals as the currency gained traction among traders seeking quick returns.Market participants say the surge reflects heightened expectations rather than underlying economic strength.

Zafar Sultan Paracha said demand had surged across investor categories, though he cautioned that trading volumes may be even higher due to undocumented transactions.“People’s expectations are very high,” Paracha said, urging investors to base decisions on fundamentals rather than speculation.Economists warn the rally bears hallmarks of behavioral bias rather than structural recovery.

Muhammad Waqas Ghani described the trend as a “gambler’s fallacy,” where investors assume a rebound is likely simply because the currency has weakened in the past.He said Iran continues to face deep economic challenges, including liquidity shortages and stress in its banking system, which limit the scope for sustained appreciation.

Without broader reforms or durable sanctions relief, gains are likely to remain localized to Pakistan’s market rather than reflecting a global revaluation.Some investors remain cautious. Isra Ghous Rasool, a business student and stock market participant, said volatility linked to geopolitical developments made the currency too risky. “There’s simply too much volatility for me to comfortably manage,” she said.

Pakistan has also taken steps to facilitate trade through Iran, temporarily easing export rules for shipments of goods to Central Asia via Iranian territory, a move analysts say may have contributed modestly to the currency’s local demand.

Still, analysts say the current surge is driven primarily by speculation tied to geopolitical expectations rather than economic fundamentals, leaving investors exposed to sharp reversals if diplomatic progress stalls.

The discussions, held days after a Pakistan-brokered ceasefire, marked the first direct engagement between senior U.S. and Iranian officials since Iran’s 1979 Islamic Revolution. Delegations led by U.S. Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Qalibaf met over more than 20 hours at Islamabad’s Serena Hotel, with Pakistani mediators shuttling between the sides.

Despite moments when negotiators appeared close to a framework agreement, talks ultimately stalled over key issues including Iran’s nuclear program, control of the Strait of Hormuz, and access to frozen assets, according to 11 sources familiar with the discussions.

A U.S. official said Washington’s core objective remained ensuring Iran does not obtain a nuclear weapon, while Iranian officials emphasized sovereignty concerns, sanctions relief, and broader security guarantees.

Iran has consistently denied seeking nuclear weapons but maintains its right to uranium enrichment.Sources described a tense and shifting atmosphere, with periods of optimism giving way to deadlock. At one stage, the sides were “80 percent” toward an understanding before unresolved political decisions derailed progress, one source said.

Pakistan played a central mediating role, with Prime Minister Shehbaz Sharif confirming that efforts to bridge differences are ongoing. Officials said communication between Tehran and Washington continues through intermediaries, even after the formal talks ended.

U.S. President Donald Trump said on Monday that Iran had reached out seeking a deal, though this could not be independently verified. A White House spokesperson reiterated that Washington’s position remains unchanged, particularly its demand that Iran abandon any pathway to nuclear weapons.

Iranian officials signaled deep mistrust, citing past negotiations and subsequent military actions, while also indicating willingness to continue discussions under defined conditions.The Strait of Hormuz remains a central point of contention, with Iran asserting control over the waterway and the United States insisting on restoring unrestricted navigation.

The dispute has had significant implications for global energy markets, contributing to volatility and supply concerns.Mediators, including Pakistani officials and regional diplomats, have continued backchannel communications in an effort to revive talks.

Both sides face mounting pressure to de-escalate, with economic costs rising and broader geopolitical risks intensifying.

Iran and the United States have agreed to a conditional two-week ceasefire, marking a temporary pause in hostilities that have disrupted regional stability and threatened global energy supply routes, according to statements from officials in both countries and mediators involved in the talks.

The agreement provides for an immediate halt to attacks and the reopening of maritime traffic through the Strait of Hormuz, a critical corridor for global oil shipments. Iranian authorities said safe passage would be coordinated with their armed forces during the ceasefire period, indicating continued operational control over the waterway.

The announcement was confirmed by Shehbaz Sharif, who said the ceasefire would apply “everywhere including Lebanon and elsewhere” and take effect immediately. Sharif also invited both sides to send delegations to Islamabad for talks aimed at reaching a longer-term settlement, positioning Pakistan as a key mediator in the process.

Officials in Washington and Tehran offered differing emphases on the agreement. Donald Trump described the ceasefire as a “total and complete victory” for the United States, stating that US military objectives had been achieved and that discussions toward a broader peace arrangement were already advanced. He added that Washington would suspend further military action, including previously stated threats against Iranian civilian infrastructure, contingent on compliance with the terms of the agreement.

Iranian Foreign Minister Seyed Abbas Araghchi confirmed that Tehran would halt what he described as “defensive operations” to facilitate negotiations. He said Iran had submitted a 10-point proposal that Washington had accepted as the basis for talks, while also reviewing a separate 15-point proposal put forward by the United States.

Despite these developments, there were inconsistencies in how the ceasefire’s geographic scope was described. Benjamin Netanyahu stated that the agreement did not extend to Lebanon, contradicting assertions by Pakistani officials and some US sources that the ceasefire would apply across multiple fronts. The discrepancy highlights ongoing uncertainty over the terms and implementation of the arrangement.

No official text of either proposal has been publicly released. However, details reported by Iranian state media suggest that Tehran’s 10-point plan includes provisions for maintaining its authority over the Strait of Hormuz, securing the lifting of sanctions, unfreezing overseas assets, and obtaining compensation for damages.

The proposal is also reported to call for the withdrawal of US forces from the region, recognition of Iran’s nuclear enrichment activities, and a binding United Nations resolution to formalize any final agreement.

Iranian diplomatic messaging has reinforced these positions, emphasizing continued control over strategic waterways and a cessation of hostilities across multiple regional theaters. Tehran has also indicated that any lasting agreement would need to address broader geopolitical and economic demands, including sanctions relief and security guarantees.

By contrast, the US proposal is reported by regional sources cited by CNN to focus on nuclear and security constraints. The 15-point framework is believed to include commitments by Iran to forgo nuclear weapons development, surrender highly enriched uranium, limit its defense capabilities, and curtail support for regional proxy groups. It also includes provisions to ensure the continued operation of the Strait of Hormuz as an open international shipping route.

Iran has previously rejected these terms, describing them as “excessive, unrealistic and unreasonable,” suggesting that significant gaps remain between the two sides despite the temporary ceasefire.The reopening of the Strait of Hormuz is a central component of the agreement, given its importance to global energy markets.

Any disruption to shipping through the waterway has immediate implications for oil prices and supply chains, making the ceasefire’s maritime provisions a key focus for international stakeholders.

The two-week timeframe underscores the provisional nature of the arrangement, with both sides framing the ceasefire as an opportunity to advance negotiations rather than a definitive resolution. Diplomatic engagement is expected to intensify in the coming days, particularly with the proposed talks in Islamabad.

While the agreement signals a de-escalation after a period of heightened tensions, the absence of a publicly verified framework and conflicting statements from key actors point to a fragile understanding that will depend on sustained diplomatic coordination and adherence to interim commitments.

Writing in Foreign Affairs, Zarif said Iran should offer to limit its nuclear program and reopen the Strait of Hormuz in exchange for a comprehensive lifting of U.S. sanctions, a proposal he said Washington had previously rejected but might now consider under changed circumstances.

The remarks come as the United States has put forward a 15-point ceasefire framework that includes restoring maritime access through the Strait of Hormuz, though there has been no indication of progress in negotiations.

Zarif, who played a central role in negotiating the 2015 nuclear agreement, no longer holds an official government position but remains an influential figure. Analysts note that such proposals are unlikely to be published without at least informal alignment with senior leadership in Tehran.

Iranian officials have repeatedly pointed to past instances in which negotiations with Washington coincided with military action, including the current conflict, as a source of distrust.

Zarif also criticized previous U.S. negotiating representatives, including Jared Kushner, questioning their expertise in geopolitics and nuclear policy.

The proposal underscores tentative signals of diplomatic maneuvering amid ongoing hostilities, even as military exchanges and tensions in the region continue.

Brent crude futures rose 65 cents to $112.84 a barrel by 0446 GMT, while U.S. West Texas Intermediate climbed 84 cents to $98.75, after both benchmarks had earlier fallen by more than $1. The spread between the two contracts widened to over $13 a barrel, the largest gap in years.

The volatility follows a U.S. decision to allow the temporary delivery and sale of Iranian-origin oil already at sea, injecting additional supply into markets strained by disruptions linked to the ongoing conflict.

Market sentiment remained highly sensitive to geopolitical developments after Donald Trump issued a 48-hour ultimatum demanding Iran fully reopen the Strait of Hormuz or face strikes on its power plants.Iranian officials responded with warnings that any such action would trigger attacks on critical energy and infrastructure assets across the Gulf.

Iran’s Parliament Speaker Mohammad Baqer Qalibaf said regional facilities could face “irreversible” damage if Iranian plants were targeted.Analysts said the exchange of threats pointed to a heightened risk of escalation.

Amrita Sen of Energy Aspects said markets were underestimating the likelihood that Iran would resist pressure, warning that further confrontation could have severe consequences for Gulf infrastructure.

Despite the release of additional Iranian oil, traders remained focused on the scale of supply disruption caused by the conflict. The Strait of Hormuz, a key artery for global energy flows handling roughly 20% of oil and liquefied natural gas trade, has been severely affected.Industry estimates suggest the war has removed between 7 million and 10 million barrels per day from Middle East production, tightening global supply even as policymakers attempt to stabilise markets.

Vandana Hari of Vanda Insights said short-term price movements would continue to be driven by geopolitical rhetoric, but longer-term trends would depend on the restoration of oil flows from the region.

Fatih Birol, head of the International Energy Agency, described the current crisis as “very severe,” exceeding the combined impact of the oil shocks of the 1970s.The conflict, now in its fourth week, has damaged major energy facilities and disrupted shipping routes, amplifying concerns over prolonged supply constraints and broader economic fallout.

The interplay between potential supply increases from Iranian oil and the risk of further infrastructure damage has left markets exposed to sharp price swings as the situation evolves.