The United States has put forward a draft peace proposal aimed at resolving the ongoing conflict with Iran, circulating it among key allies such as Israel. This move comes as diplomatic efforts are ramping up to maintain a fragile ceasefire while working toward a more comprehensive agreement. The proposal’s key elements include reopening the Strait of Hormuz to unrestricted commercial traffic, lifting the US blockade on Iranian ports, and unfreezing billions of dollars in Iranian assets. Additionally, a 60-day negotiation period is proposed to focus on Iran’s nuclear program.
According to the proposed plan, maritime activity through the crucial Strait of Hormuz would return to normal levels within 30 days. Discussions would also address Iran’s stockpile of highly enriched uranium, future enrichment activities, and enhanced monitoring by the International Atomic Energy Agency (IAEA). In return, Iran would pledge not to develop nuclear weapons. While US Vice President JD Vance indicated that an agreement is near, he acknowledged unresolved issues concerning uranium enrichment and the handling of existing nuclear materials.
Pakistan has played a significant role in facilitating indirect talks between the US and Iran, with Pakistani Foreign Minister Ishaq Dar scheduled to meet US Secretary of State Marco Rubio in Washington. Despite these diplomatic efforts, tensions in the Gulf remain high, underscored by recent military incidents involving US and Iranian forces that threaten the tenuous ceasefire.
The proposed agreement has sparked debate among regional stakeholders. Israel has expressed concerns that the framework delays critical decisions about Iran’s nuclear program, while discussions continue on sanctions relief and maritime security. The management of the Strait of Hormuz remains a contentious issue, with Iran asserting its role in overseeing shipping and the US demanding unrestricted navigation and opposing any future tolls on commercial vessels.
Investors are watching developments closely given the Strait’s significance to global energy supplies, with oil markets reacting sensitively to the negotiations. Analysts suggest that the coming weeks will be decisive in determining whether the ceasefire can lead to a broader diplomatic settlement that could ease regional tensions and stabilize international energy markets.