US, Iran weigh a temporary, limited deal to stop fighting

Hopes for such a deal reopening the strait of Hormuz have already moved markets worldwide

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The proposal would formally end the conflict in which full-scale warfare was paused by a ceasefire announced on 7 April.

(AP)

The United States and Iran are edging towards a limited, temporary agreement to halt their war, sources and officials said on Thursday, with a draft framework that would stop the fighting but leave the most contentious issues unresolved.

The emerging plan centres on a short-term memorandum rather than a comprehensive peace deal, underscoring deep divisions between the two sides and signalling that it would be an interim step.

Hopes that even a partial deal could lead to the reopening of the Strait of Hormuz have already moved markets, with global stocks approaching record highs on Thursday and oil prices nursing steep losses on bets that supply disruptions could ease.

Tehran and Washington have scaled back ambitions for a sweeping settlement as differences persist, particularly over Iran’s nuclear programme—including the fate of its highly enriched uranium stockpiles and how long Tehran would halt nuclear work.

Instead, they are working toward a temporary arrangement aimed at preventing a return to conflict and stabilizing shipping through the strait, the sources and officials said.

“Our priority is that they announce a permanent end to war and the rest of the issues could be thrashed out once they get back to direct talks,” a senior Pakistani official involved in mediation between the two sides told Reuters.