Diplomacy appears to be gaining traction in the months-long Middle East crisis, with Iran actively assessing a key U.S. offer to end the fighting that has disrupted global energy supplies and rattled markets worldwide.
The conflict ignited in late February, when U.S. and Israeli strikes under Operation Epic Fury hit Iranian targets over suspected nuclear advances and regional proxy threats. Iran retaliated by blockading the Strait of Hormuz, the vital waterway carrying 20 per cent of global oil and liquefied natural gas. Prices surged 25 per cent in March alone, according to Bloomberg figures, squeezing economies across Europe and Asia.
A fragile April ceasefire stopped Iran’s drone and missile attacks on Gulf states like the UAE, but few ships have navigated the strait since. The U.S. responded with a blockade on Iranian ports, intercepting dozens of vessels, including an oil tanker disabled in the Gulf of Oman on Wednesday by Central Command.
Now, Pakistan is facilitating talks. Its foreign minister expressed hope, saying his country was “endeavouring to convert this ceasefire into a permanent end to this war.”
U.S. outlet Axios reported Wednesday on a one-page, 14-point memorandum outlining steps towards nuclear negotiations, including a halt to Iranian enrichment, sanctions relief, and free Hormuz passage, all conditional on a final pact. Reuters confirmed details from mediation sources.
Iran’s foreign ministry spokesman Ismail Baghaei told ISNA, “The American proposal is still being reviewed by Iran and after concluding, it will inform the Pakistani side of its opinion.”
Parliamentary spokesman Ebrahim Rezaei dismissed it on X, stating, “The Americans will not gain anything in a war they are losing that they have not gained in face-to-face negotiations.” He warned Iran “has its finger on the trigger and is ready” for a “harsh and regret-inducing response” without concessions.
President Donald Trump sounded optimistic, revealing “very good talks with Iran in the last 24 hours.” He added: “They [Iran] want to make a deal… I think we won.” Trump paused Project Freedom, a short-lived effort to escort ships through the strait, and linked ending Operation Epic Fury to Iranian compliance.
Amid ongoing Israel-Hezbollah clashes, Prime Minister Benjamin Netanyahu stressed alignment with Trump. He said, “We share common goals, and the most important objective is the removal of all enriched material from Iran and the dismantling of Iran’s enrichment capabilities.”
With IMF warnings of a 2 per cent hit to global GDP, the world watches if this could forge enduring peace.