The U.S. has circulated a draft peace proposal among key allies, including Israel, as part of diplomatic efforts to maintain the ceasefire in the Iran conflict and move toward a broader settlement. The proposed framework aims to reopen the Strait of Hormuz to unrestricted commercial shipping, lift the U.S. blockade on Iranian ports, and grant Iran access to billions in frozen assets. A 60-day negotiation period is also envisioned, concentrating on Iran’s nuclear program’s future.
The draft suggests that maritime traffic through the Strait of Hormuz would gradually normalize within 30 days. Negotiations are set to focus on Iran’s enriched uranium stockpile, future enrichment activities, and enhanced monitoring by the International Atomic Energy Agency (IAEA). Iran, under the proposal, would commit to not pursuing nuclear weapons. U.S. Vice President JD Vance indicated that while both sides are nearing an agreement, disagreements persist over uranium enrichment and the handling of existing nuclear materials.
Pakistan has been instrumental in facilitating indirect talks between Washington and Tehran, with Pakistan’s Foreign Minister Ishaq Dar scheduled to meet U.S. Secretary of State Marco Rubio in Washington. Despite these diplomatic efforts, tensions remain high in the Gulf region, with recent military incidents between U.S. and Iranian forces highlighting the ceasefire’s fragility and the risk of renewed escalation.
The proposed agreement has sparked debate among regional stakeholders. Israel has expressed concerns that the framework delays major decisions on Iran’s nuclear program, while discussions continue over sanctions relief and maritime security arrangements. The negotiations also revolve around the control and management of the Strait of Hormuz, with Iran asserting its role in managing shipping while the U.S. insists on unrestricted navigation and opposes any future toll system for commercial vessels.
Oil markets are sensitive to these developments, with investors closely watching negotiations due to the Strait’s significance to global energy supplies. Analysts suggest that the coming weeks are crucial to determining whether the ceasefire can evolve into a broader diplomatic agreement capable of reducing regional tensions and stabilizing international energy markets.