Longstanding tensions in West Asia that have disrupted global energy markets, shaken shipping routes, and fuelled broader geopolitical instability may be nearing a turning point, as the United States and Iran move closer to a draft agreement aimed at ending the Gulf conflict, according to a Pakistani mediation source.
The source, speaking to reporters, said earlier reporting by Axios on the proposed framework was accurate, adding that negotiations were progressing quickly through Pakistan’s continued role as an intermediary between the two sides.
“We are getting close to closing this very soon,” the source said, noting that Islamabad has remained engaged in facilitating indirect talks after hosting the only confirmed round of peace discussions last month.
According to the Axios report, the emerging draft includes provisions such as Iran agreeing to halt nuclear enrichment activities in exchange for the gradual lifting of U.S. sanctions and unfreezing of Iranian assets. It also outlines potential easing of restrictions on maritime movement through the Strait of Hormuz.
The proposed understanding is also said to involve a 30-day transition period for more detailed negotiations on broader issues, including regional security arrangements and shipping access.
The diplomatic developments have already had major market impact, with global oil prices falling sharply and equity markets rising on hopes of de-escalation. Benchmark Brent crude reportedly dropped more than 8% following the news.
Neither U.S. nor Iranian officials have formally confirmed the details. Reuters reported that both the White House and the State Department declined to comment, while Iranian officials have previously indicated they are reviewing a U.S.-backed proposal.
The discussions come amid heightened tensions in the region, including disruptions to maritime traffic in the Strait of Hormuz and recent military exchanges affecting shipping routes.
- With Inputs from the Reuters
