4 min readMay 7, 2026 10:05 PM IST
Iran and the United States are navigating a fragile and temporary ceasefire, which is aimed at pausing hostilities in the West Asian region, as Tehran is expected to respond to Washington’s ceasefire proposal to end the over two-month-old conflict.
As Iran and the US both advance toward an agreement, a one-page MoU by Washington proposes to resolve sticking points in the 30-day negotiation period, and come to a settlement over issues such as Iran’s nuclear programme, Tehran’s frozen assets and security in the Strait of Hormuz, CNN reported, quoting a regional source.
What’s on the table:
Ceasefire duration: In Iran’s 14-point proposal to end the conflict in West Asia, the Islamic nation pushed to focus on ending the war instead of extending the ceasefire, and suggested resolving all the issues within 30 days of finalising the agreement. The 30-day window would reportedly be for negotiations on a broader agreement.
Strait of Hormuz: President Donald Trump paused the “Project Freedom”, which was aimed at guiding commercial ships to cross the key waterway; however, the US blockade of Iranian ports is currently ongoing.
One of the defining issues of the war has been Iran’s leverage over Hormuz, which is responsible for the passage of 20 per cent of global oil supply. Tehran has called for a new mechanism to control the narrow waterway.
14-point proposal: Iran’s 14-point proposal was in response to Washington’s nine-point peace plan, which sought a two-week ceasefire, CNN reported. In the proposal, Iran reportedly stated that it wants to end the war and seeks a guarantee from the United States against future attacks, while adding a complete withdrawal of American forces from the region (around Iran).
Trump has made Iran’s nuclear issue a “red line”, but the Islamic Republic expects its right to uranium enrichment to be guaranteed as a signatory to the Non-Proliferation Treaty (NPT). Iran expects the sanctions, which have crippled its economy, to be waived in the bargain to end the conflict.
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The Emerging Deal
A short-term memo, not a comprehensive peace deal
The US and Iran are working toward a limited, temporary memorandum to halt their war. The framework unfolds in three stages: formally ending the war, resolving the Strait of Hormuz crisis, then a 30-day window for broader negotiations. Deep divisions persist, making a sweeping deal impossible for now.
Feb 28, 2026
War begins. US-Israeli strikes on Iran trigger full-scale conflict.
Mar 2, 2026
Hezbollah opens fire in support of Iran, triggering a second front in Lebanon.
Apr 7, 2026
Full-scale fighting paused by a ceasefire announcement.
May 6, 2026
Trump pauses a two-day naval mission to reopen the Strait, citing progress in talks.
May 7, 2026 — Now
Deal framework surfaces. 3-stage plan confirmed: end the war, resolve Hormuz, then 30-day talks window.
The Gaps
One-page memo omits Washington’s central demands
The draft memorandum leaves unresolved issues that the US has insisted on in the past — and that Iran has rejected. Iran’s parliament speaker mocked reports of a breakthrough, calling it “Operation Trust Me Bro.”
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400+ kg of near-weapons-grade uranium
Iran’s existing stockpile of highly enriched uranium — one of Washington’s central concerns — is not addressed in the memo.
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Iran’s ballistic missile programme
Limits on Iran’s missile capabilities — a key US demand — are absent from the current framework.
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Support for proxy militias
Iran’s backing of Hezbollah and other proxy militias in the Middle East is not mentioned in the proposed deal.
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Strait of Hormuz still blocked
Reopening the strait is a second-stage goal, not an immediate condition — leaving energy supply disruptions in place.
“More of an American wish-list than a reality.”
— Ebrahim Rezaei, Iranian lawmaker, May 7, 2026
Negotiations
Witkoff and Kushner lead for the US; Pakistan mediates
Trump’s envoy Steve Witkoff and son-in-law Jared Kushner are leading US negotiations. Pakistan has emerged as the key mediator, pushing for a permanent end to the war before other issues are resolved. Pakistan’s foreign ministry said it expects “an agreement sooner rather than later.”
🇺🇸 US Position
Nuclear suspension + open the Strait first
🇮🇷 Iran Position
Formal end to war + halt Israeli strikes in Lebanon first
“They want to make a deal… it’s very possible. It’ll be over quickly.”
— US President Donald Trump, White House, May 6, 2026
Markets
Oil tumbles, stocks near record highs on deal hopes
Even an incomplete deal framework has moved markets sharply. Hopes for a partial agreement and eventual reopening of the Strait pushed Brent crude steeply lower while global equities approached record highs.
Sources: Reuters (Ariba Shahid, Steve Holland, Nayera Abdallah) · May 7, 2026
What’s left out:
Nuclear issue: The one-page memo, which the United States has touted, would eventually declare an end to the war in West Asia, but it omits the key Washington demand that Iran suspend its nuclear work. The fate of Tehran’s enriched uranium stockpiles remains elusive, and whether or not the Iranian government will halt its nuclear activities, Reuters reported.
Regional security architecture: The question of who would control the Strait of Hormuz and other long-term security architecture in the region still remains unresolved as the West Asia crisis continues to choke the global energy supply chain.
Iran had earlier said that it has implemented a new mechanism to govern the maritime traffic for ships passing through the Strait of Hormuz, which meant the vessels would have to secure a mandatory transit permit before crossing one of the oil shipping’s critical chokepoints.
Key players:
United States: President Donald Trump’s administration, via Vice President JD Vance, envoys Steve Witkoff and Jared Kushner, has been leveraging their position with the US Navy’s naval blockade of Iranian ports and Strait of Hormuz, alongside economic sanctions to bring Iran to the negotiation table on several issues, including the nuclear programme.
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Iran: The country faced US-Israel attacks in June last year, and a full-fledged war was announced by both the nations on February 28, but Tehran has stuck to its demands of lifting economic sanctions, unlocking frozen assets and continuing uranium enrichment.
Israel: Prime Minister Benjamin Netanyahu’s government has clarified that they support the US-Iran ceasefire in the region but have categorically said that issues regarding the militant group Hezbollah in Lebanon is a separate matter.
Market impact:
Oil prices: The war in West Asia has made the oil prices highly volatile, and the trajectory of crude has remained unpredictable, while soaring to new heights when oil refineries in the UAE, Saudi Arabia, among others, were attacked and plunging to a lower level when Trump announced a truce in the region.
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