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People ride motorcycles near a billboard displaying an image of the late Iranian Supreme Leader, Ayatollah Ali Khamenei, in Tehran, Iran, May 6, 2026.
– Trump states there has been “significant progress” toward reaching an agreement.
– Iran insists on a fair, comprehensive deal during ongoing negotiations.
– Brent crude oil prices dip below $100 amid hopes for a deal.
The U.S. and Iran are nearing an agreement on a one-page memorandum intended to end the conflict in the Gulf, according to a source familiar with the talks. The source confirmed that an earlier report by Axios, which cited two U.S. officials and two other insiders, was accurate.
“We’re close to wrapping this up,” the source added.
Last month, Pakistan facilitated the only peace talks so far, continuing its role as mediator by exchanging proposals between the parties.
News of a potential resolution caused global oil prices to plummet, with Brent crude futures dropping over 8% to approximately $100 a barrel. Stock markets rallied globally, and bond yields declined on optimistic prospects of ending a war that has disrupted energy supplies.
Requests for comments from the White House, State Department, and Iranian officials went unanswered. Meanwhile, a spokesperson from Iran’s foreign ministry told CNBC that Tehran is reviewing a 14-point U.S. proposal.
Axios reported that the White House believes it is close to finalizing a one-page deal to end hostilities with Iran. This news emerged hours after President Donald Trump halted a three-day naval operation aimed at reopening the Strait of Hormuz.
The report indicated that Iran is expected to respond to several key items within the next 48 hours. Among the proposed terms, the deal would include Iran agreeing to halt nuclear enrichment activities, the U.S. lifting sanctions and releasing billions of dollars in Iranian frozen assets, and both sides easing restrictions on transit through the Strait of Hormuz.
A 14-point Memorandum of Understanding (MoU) is being negotiated by U.S. envoys Steve Witkoff and Jared Kushner, along with Iranian officials through direct discussions and mediators. In its current draft, the memorandum states that hostilities in the region would cease, initiating a 30-day negotiation period to establish a comprehensive agreement addressing the Strait’s opening, Iran’s nuclear program, and U.S. sanctions.
Restrictions on shipping through the Strait and the U.S. naval blockade of Iran would gradually be lifted over this month-long period. If negotiations fail, U.S. forces could restore the blockade or resume military action, as per officials.
Earlier, Trump announced a pause to “Project Freedom,” a mission launched on Sunday to help ships navigate the blocked Strait. The operation had failed to resume shipping significantly and even triggered Iranian retaliations, including attacks on vessels and targets in neighboring countries.
Recently, a French shipping company reported that one of its container ships was hit in the Strait, with the crew evacuated after sustaining injuries. Trump cited “progress in negotiations” when announcing the pause, without sharing further details.
He stated on social media that while the blockade remains active, the movement of ships through the Strait would be temporarily halted to allow negotiations to conclude.
Vessels are seen in the Strait of Hormuz, Musandam, Oman, April 27, 2026, as reported by Reuters.
Trump’s naval effort was initiated after he signaled probable rejection of Iran’s recent 14-point proposal, which also called for setting nuclear talks aside until after the conflict was resolved.
During a visit to China on Wednesday, Iran’s Foreign Minister Abbas Araqchi did not mention Trump’s latest remarks but emphasized that Tehran seeks “a fair and comprehensive agreement.”
Since February 28, Iran has effectively shut down the Strait to all shipping except its own, further escalating tensions amid U.S. and Israeli hostilities. In April, the U.S. added its own blockade of Iranian ports.
Trump’s “Project Freedom” aimed to use U.S. naval force to open the Strait but was ineffective, prompting Iran to expand control over nearby coastlines, including areas of the UAE. During the operation, Iran launched drone and missile attacks on ships in the area, including an explosion reported on a South Korean cargo vessel.
Iran also struck targets in the UAE, including a major oil port, to extend its influence beyond the Strait.
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