US President Donald Trump has shared a draft peace agreement for the war with Iran with allies including Israel, as both sides seek to prevent fresh ceasefire breaches from derailing a potential deal. The move comes amid fragile negotiations, with Pakistan's foreign minister Mohammad Ishaq Dar set to visit Washington on Friday to meet US Secretary of State Marco Rubio in an effort to accelerate talks.
The draft, which is similar to one already circulating in the Middle East, proposes opening the Strait of Hormuz to commercial shipping, lifting the US blockade of Iranian ports, and releasing up to $12bn (£9bn) in frozen Iranian assets. It aims for commercial shipping in the strait to return to pre-war levels within 30 days, followed by up to 60 days of negotiations on Iran's nuclear programme, including its enriched uranium stockpile, a suspension of enrichment, and IAEA supervision. Iran would renounce nuclear weapons.
However, the agreement faces hurdles. US Vice-President JD Vance acknowledged sticking points regarding Iran's enriched uranium stockpile and enrichment. The deal is also deeply unpalatable for Israel, as it defers firm nuclear commitments and requires a permanent ceasefire including Lebanon. Meanwhile, Iran is separately negotiating with Oman over potential tolls for navigational services in the strait, a move Trump has threatened to counter with force.
Tensions remain high after Iran targeted a US airbase in Kuwait on Thursday, following US strikes on an Iranian drone operation near the Strait of Hormuz. The Islamic Revolutionary Guard Corps (IRGC) navy asserted control over the strait, stating that 26 vessels had been granted passage in the past 24 hours and that permission is mandatory. Any skirmishes risk collapsing the fragile ceasefire agreed on 8 April.
Oil prices rose 2% on Thursday but remained below $100 a barrel. In Moscow, Iran's deputy foreign minister Ali Bagheri reiterated demands for unconditional release of frozen assets. The US has imposed sanctions on Iran's Persian Gulf Strait Authority, and Treasury Secretary Scott Bessent threatened sanctions against Oman if it helps impose a toll system. Iran's supreme leader Mojtaba Khamenei has told officials not to turn away from negotiations, amid growing domestic tensions over the talks.
