Iran expected to respond Thursday to US proposal for ending war

ISLAMABAD/WASHINGTON/TEHRAN, May 7 — Iran is expected to formally respond on Thursday to a U.S. proposal designed to end the ongoing Gulf conflict, as diplomatic efforts led through Pakistan move into what officials describe as a critical phase.

The proposal under discussion is reportedly a one-page, 14-point memorandum that would formally halt hostilities and create a framework for broader negotiations between Washington and Tehran.

Sources familiar with the talks said Iran’s response is expected to be delivered through Pakistani mediators, who have played a central role in facilitating communication between the two sides throughout the crisis.

Trump signals optimism

U.S. President Donald Trump said the United States had held “very good talks” with Iran over the last 24 hours and suggested that a deal may be within reach.

Trump has increasingly combined diplomatic messaging with military pressure, warning earlier this week that Iran could face attacks at a “much higher level” if negotiations fail. At the same time, he paused “Project Freedom,” the U.S. naval operation intended to reopen the Strait of Hormuz through military escort missions.

Officials say the pause was intended to give diplomacy a chance while maintaining pressure on Tehran.

What is in the US proposal?

While the full contents of the proposal have not been officially released, sources briefed on the negotiations say the memorandum could include:

• A formal end to active hostilities
• Gradual reopening of the Strait of Hormuz
• Limited sanctions relief for Iran
• Temporary restrictions on uranium enrichment
• A 30-day negotiation period toward a broader agreement

The proposal reportedly leaves more difficult issues such as Iran’s missile programme and long-term nuclear restrictions for future negotiations.

Iran reviewing proposal cautiously

Iranian officials have publicly taken a cautious position.

Iran’s foreign ministry confirmed the proposal is under review and said Tehran would communicate its position through Pakistan once consultations are complete.

However, some Iranian lawmakers have criticized the reported framework, with one senior parliament member describing parts of the proposal as more of an “American wish-list” than a realistic agreement.

Iranian media reports also suggest Tehran still has objections related to:

• Nuclear enrichment limits
• Sanctions guarantees
• Military restrictions in the Gulf

Pakistan’s mediation role expands

Pakistan has emerged as the most important intermediary in the negotiations.

The country hosted earlier peace talks and has continued serving as the primary communication channel between Washington and Tehran. Pakistani officials have repeatedly expressed optimism that the current ceasefire could evolve into a permanent end to the conflict.

Diplomatic sources say Pakistan’s involvement has helped prevent a total collapse in negotiations during periods of military escalation.

Oil markets watching closely

Financial markets are reacting strongly to every development in the talks.

Oil prices have fallen sharply over the past two days as traders reduce the geopolitical risk premium that had pushed crude prices above $110 earlier in the crisis.

The Strait of Hormuz remains the key focus for investors because nearly 20% of global oil supply passes through the narrow waterway.

Any sign of:

• Reopening shipping routes
• Reduced naval tensions
• A lasting ceasefire

…could place further downward pressure on oil prices.

Ceasefire remains fragile

Despite diplomatic progress, tensions in the Gulf remain high.

The ceasefire agreed earlier this year has already seen multiple violations from both sides, including:

• Naval incidents
• Drone attacks
• Missile launches

U.S. officials recently said Iran had launched more than 10 attacks during the truce period, though Washington described them as below the threshold for restarting full-scale war.

Military forces from both countries remain heavily deployed around the Strait of Hormuz.

Final analysis

Thursday’s expected Iranian response could become one of the most important diplomatic moments since the conflict began.

If Tehran accepts the framework:
👉 The Gulf could move toward de-escalation
👉 Oil markets may stabilize further
👉 Detailed negotiations could begin

But if Iran rejects the proposal:
👉 Military tensions could rapidly return
👉 The Hormuz crisis may intensify again
👉 Oil prices could spike sharply higher

For now, diplomacy remains alive but the outcome is still uncertain.