What’s in the Iran War End Deal and Hormuz Reopening Talks?

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Vessels traverse the Strait of Hormuz near Musandam, Oman, on May 6, 2026. — Reuters/File

As the stalemate surrounding Iran’s ongoing conflict threatens to destabilize the global economy, both Washington and Tehran have dialed down their efforts toward a comprehensive peace agreement, now favoring a limited deal that postpones the toughest issues.

Here’s what is currently known about the proposals being discussed and the unresolved major disagreements fueling the conflict:

Current Status of Negotiations
Sources from both sides indicate that recent diplomatic efforts are focused on a temporary memorandum of understanding designed to pause the war and permit shipping through the Strait of Hormuz while more extensive negotiations continue. This outline would occur in three phases: officially ending the conflict, addressing the crisis over the Strait, and establishing a 30-day window for broader discussions. However, gaps remain, even in this limited framework. Any comprehensive agreement would need to tackle persistent disputes like Iran’s nuclear program, a subject that took years of arduous negotiations and technical expertise to address in the 2015 deal, which was ultimately abandoned by the U.S. in 2018.

Main Issues in Negotiation

Ending the Conflict: U.S. President Donald Trump asserts the war is nearing its end, achievable if Iran accepts certain conditions. Iran remains distrustful, citing recent unannounced attacks during ceasefire periods, in Gaza and Lebanon, which Tehran attributes to Israeli attacks and fears that truces won’t hold without external guarantees.
Strait of Hormuz and Gulf Blockade: Iran claims control over the Strait of Hormuz, while the U.S. enforces a blockade on Iranian ports. Both nations are suffering economically; Iran’s oil exports are hampered, risking storage shortages and production cuts, and the blockade has ignited a global energy crisis ahead of U.S. midterm elections. Iran demands official recognition of its authority over Hormuz, though this is unlikely to gain international support.
Nuclear Program: The U.S. suspects Iran is intent on developing a nuclear weapon, which Iran denies, insisting its program is solely peaceful. The core dispute centers around Iran’s uranium enrichment capabilities and the stockpile of highly enriched uranium. A potential deal might involve a long-term freeze on enrichment activities and uranium exports, but substantial disagreements remain.
Ballistic Missile Program: The U.S. previously insisted Iran limit missile ranges to prevent threats to Israel. While Iran claims its missile stockpiles have been degraded, it refuses to discuss its ballistic arsenal, asserting its right to conventional weapons.
Sanctions and Frozen Assets: Iran’s economy continues to suffer from sanctions, prompting calls for their removal, alongside demands for compensation for wartime damages—though U.S. reluctance complicates this. Iran also asserts that any peace deal should include the inclusion of Israel’s actions against Hezbollah, a point opposed by Israel.

Perspectives of Israel and Gulf States
Israel remains outside direct negotiations, with Prime Minister Netanyahu potentially reluctant to end hostilities and unwilling to include his campaign against Hezbollah in a deal involving Washington and Tehran. Gulf nations are divided; they face persistent threats from Iran and oppose any agreement that would allow Iran to continue attacks or exert control over the Strait. They worry about being sidelined and feel their security needs might not be prioritized.

Potential Roles for Europe, China, and Russia
European nations—especially France, Germany, and the UK—who participated actively in the 2015 nuclear deal, are interested in mediating any future agreements, especially concerning free passage through Hormuz. China, a significant importer of Gulf oil passing through the Strait, might serve as a guarantor, although Iran has shown no clear interest in such a role. Similarly, Iran may seek Russia’s involvement in managing its uranium stockpiles, but U.S. acceptance of this remains uncertain.