Iran says it is reviewing new US proposal to end war

AAP
May 07, 2026, updated May 07, 2026

Source: US Central Command

Iran says it is reviewing a new US proposal, after sources said the two sides were closing in on a memorandum to end the war in the Gulf while leaving tricky issues such as Iran’s nuclear ‌program for later.

An Iranian foreign ministry spokesperson, cited by the country’s ISNA news agency, said Tehran would convey its response soon via Pakistan.

Islamabad hosted the war’s only peace talks and has since served as the main conduit for messages between the sides.

In ‌an early morning (US time) social media post, US President Donald Trump gave no details of any specific proposal but said the war could end if “Iran agrees to give what has been agreed to”.

He later told The New York Post it was still too soon to consider face-to-face meetings to sign an agreement.

Trump sought to pressure Tehran with threats of a new wave of bombing if a deal is not reached.

“If they don’t agree, the bombing starts,” he posted on social media.

A Pakistani source and another source briefed on the mediation confirmed information initially reported by the US media outlet Axios about a proposed 14-point one-page memorandum that would formally end the war.

The memorandum would be followed by talks to unblock shipping through the Strait of Hormuz, lift US sanctions on Iran and agree curbs on Iran’s nuclear program, the sources said.

“We will close this very soon. We are getting close,” said the ‌source from Pakistan.

Reports ‌of the possible agreement caused global ⁠oil prices to plunge, with benchmark Brent crude futures falling 11 per cent to about $US98 a barrel.

Global share prices also leapt and bond yields fell on optimism of an end to a war that has disrupted energy supplies.

“Assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption, the already legendary Epic Fury will be at an end, and the highly effective Blockade will allow the Hormuz Strait to be OPEN TO ALL, including Iran,” Trump said in his post.

“If they don’t agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before.”

Iran is considering a US proposal to unblock the Strait of Hormuz. Photo: AAP

Hours earlier, Trump paused a two-day-old naval mission to reopen the blockaded strait, citing progress in peace talks.

Iran’s Revolutionary Guards responded by saying that if US “threats” had ended, passage through the strait would be possible under new terms it would impose.

The White House, the State Department and Iranian officials contacted by Reuters did not immediately respond to requests ‌for comment.

The source briefed on the mediation said the US negotiations were being led by Trump’s envoy Steve Witkoff and son-in-law Jared Kushner.

If both sides agreed on the preliminary deal, that would start the clock on 30 days of detailed negotiations to reach a ‌full agreement.

The full agreement would include the US lifting sanctions and releasing frozen Iranian funds, Tehran and the US lifting competing blockades on the Strait of Hormuz and some curbs on Iran’s nuclear program, with the aim of a pause or moratorium on Iranian enrichment of uranium.

While the sources said the memorandum would not initially require concessions from either side, they did not mention several key demands the US has previously made. Rejected by Iran, they include curbs on its missile program and an end to its support for proxy militias in the Middle East.

The sources spoke of potential curbs on future Iranian enrichment of uranium but did not mention of its existing stockpile of more than 400 kilograms of it, already enriched to near weapons grade. The US has previously demanded it give that up before any end to the war.

Iran’s Foreign Minister Abbas Araqchi, visiting China, made no mention of Trump’s latest remarks but said his country was holding out for “a fair and comprehensive agreement”.

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