Summary
The United States is awaiting Iran’s official response to its latest proposal aimed at ending the Gulf conflict and reopening the Strait of Hormuz. Diplomats say the framework under discussion could establish a temporary ceasefire, reduce military tensions and launch broader negotiations over sanctions and Iran’s nuclear programme. Pakistan remains central to the mediation effort as markets closely watch the outcome.
WASHINGTON/TEHRAN/ISLAMABAD, May 7 — The United States is waiting for Iran to formally respond to Washington’s latest proposal aimed at ending the Gulf conflict and reopening the Strait of Hormuz, as diplomatic momentum builds around what officials describe as the most serious peace effort in weeks.
The proposal, reportedly a one-page framework containing around 14 points, is intended to establish a temporary agreement that would halt active hostilities while broader negotiations continue over sanctions, shipping security and Iran’s nuclear activities.
U.S. officials say Tehran is currently reviewing the proposal through Pakistani mediators, who have become the main communication channel between both sides during the crisis.
Trump says talks progressing
U.S. President Donald Trump said negotiations had shown “very good progress” over the past 24 hours and suggested that an agreement may be possible soon.
Trump recently paused “Project Freedom,” the U.S. naval operation designed to escort ships through the Strait of Hormuz, saying diplomacy deserved an opportunity to succeed. However, he also warned that military operations could resume at a “much higher level” if talks collapse.
The White House appears to be pursuing a dual-track strategy:
- Continue negotiations through mediators
- Maintain military pressure in the Gulf
This approach reflects Washington’s effort to avoid a wider war while keeping leverage over Tehran.
What the proposal includes
While the complete text has not been released publicly, reports indicate the U.S. proposal includes:
- A temporary ceasefire framework
- Gradual reopening of the Strait of Hormuz
- Phased sanctions relief
- Temporary nuclear restrictions
- A negotiation window for a broader agreement
The most difficult issue remains Iran’s uranium enrichment programme.
According to reports, Washington is pushing for a long-term suspension or major restrictions on enrichment activities, while Tehran reportedly prefers a shorter freeze and fewer conditions.
Iran remains cautious
Iranian officials have publicly avoided signaling whether the proposal will be accepted.
Tehran has said the plan remains “under review” and warned that any agreement must be “fair and comprehensive.”
Several Iranian lawmakers and officials have also criticized parts of the proposal, calling some demands unrealistic and overly favorable to the United States.
One senior Iranian official reportedly said the U.S. could not expect to leave the conflict without addressing damages caused during the war.
Pakistan’s mediation role grows
Pakistan has emerged as the key diplomatic intermediary in the crisis.
Officials familiar with the negotiations say Islamabad has:
- Hosted indirect talks
- Delivered proposals between both sides
- Helped maintain communication during military escalation
Pakistani officials remain cautiously optimistic that the current framework could evolve into a broader peace agreement if both sides compromise.
Oil markets watching every development
Financial markets are reacting sharply to every headline related to the negotiations.
Oil prices initially fell on hopes that a deal could reduce risks to global supply through the Strait of Hormuz. However, Reuters later reported that crude rebounded after indications Iran may reject parts of the proposal.
The Strait of Hormuz handles nearly 20% of global oil shipments, making it one of the world’s most important energy chokepoints.
Any progress toward reopening the route could:
- Lower oil prices further
- Reduce shipping costs
- Ease global inflation pressure
But renewed conflict could quickly reverse those gains.
Tensions remain high in region
Despite diplomatic efforts, the regional security situation remains fragile.
Israeli strikes in Lebanon, continued U.S. sanctions targeting Iran-linked networks and ongoing naval deployments in the Gulf show that military pressure remains active.
Military forces from both countries continue operating near the Strait of Hormuz, increasing the risk of miscalculation even as negotiations continue.
Final analysis
The United States now appears to be waiting for what could become the most important Iranian diplomatic decision since the conflict began.
If Tehran accepts the framework:
👉 The Gulf could move toward de-escalation
👉 Oil markets may stabilize
👉 Formal negotiations could begin
But if Iran rejects the proposal:
👉 The ceasefire could weaken further
👉 Military operations may resume
👉 Oil prices could surge again
For now, diplomacy remains alive — but uncertainty still dominates the region.
What Could Happen Next?
1. Iran delivers official response: Tehran could accept, reject or request changes to the US proposal.
2. Temporary ceasefire expands: Both sides may agree to extend the current truce framework.
3. Oil prices swing sharply: Markets are likely to react immediately to Iran’s decision.
4. Hormuz negotiations begin: Talks may focus on restoring normal shipping traffic.
5. Military tensions return: Failure to reach a deal could trigger renewed strikes and naval escalation.
