U.S.-Iran Deal Nears End to Conflict, Oil Prices Drop on Report
The United States and Iran are close to finalizing an agreement aimed at ending the conflict between the two sides, according to a report by Axios, citing two U.S. officials and two additional sources familiar with the matter.
The proposed framework is described as a one-page memorandum containing 14 provisions that would formally bring an end to the war. Following the report, global oil prices fell sharply.
According to Axios, the United States expects Iran to respond within the next 48 hours on several key outstanding issues. One source said this marks the closest the two sides have come to a deal since the conflict began on February 28.
The White House believes a final agreement with Iran is within reach.
Meanwhile, a spokesperson for Iran's Foreign Ministry told CNBC that Tehran is 'evaluating' a peace proposal put forward by the United States, which is intended to formally end the war.
The memorandum is being negotiated by U.S. special envoy Steve Witkoff and Jared Kushner, alongside several Iranian officials. Talks are taking place both directly and through intermediaries.
The draft includes provisions under which Iran would commit to suspending uranium enrichment activities, while the United States would agree to lift sanctions and unfreeze billions of dollars in Iranian assets. Both sides would also remove restrictions on navigation through the Strait of Hormuz.
Iran would further pledge not to pursue nuclear weapons or engage in any weapons-related nuclear activity. One U.S. official said negotiators are also discussing a clause barring Iran from operating underground nuclear facilities.
Two sources said Iran would agree to remove highly enriched uranium from the country, a key U.S. demand that Tehran has previously rejected.
Iran would also accept stricter verification measures, including allowing snap inspections by United Nations nuclear inspectors, according to a U.S. official.
Negotiations over the duration of the uranium enrichment suspension remain ongoing. Three sources said the period under discussion is at least 12 years, while another indicated 15 years could be the final compromise. Iran had previously proposed a five-year suspension, while the United States had sought 20 years.
The United States is also seeking a provision that would extend the suspension period if Iran violates enrichment restrictions. After the term expires, Iran would be permitted to resume low-level uranium enrichment at 3.67%.
On May 6, U.S. President Donald Trump said the United States and Iran had held 'very productive' talks over the previous 24 hours, adding there was a 'very good chance' of reaching a final agreement. He also stated that Iran had agreed not to pursue nuclear weapons.
The memorandum would declare an end to hostilities in the region and open a 30-day negotiation period to finalize detailed agreements on opening maritime routes, restricting Iran's nuclear program, and lifting U.S. sanctions.
Two sources said the follow-up talks could take place in Islamabad or Geneva.
During the 30-day period, restrictions on shipping through the Strait of Hormuz and the U.S. naval blockade would be gradually lifted, according to a U.S. official. If negotiations fail, U.S. forces would retain the ability to reimpose the blockade or resume military operations.
On Tuesday, Trump announced a temporary suspension of 'Operation Freedom', a military campaign launched the previous day to escort commercial vessels through the Strait of Hormuz. He said the pause reflected progress in negotiations with Iran toward a final agreement.