Iran is expected to formally hand over its reply today to mediators regarding the US proposal to end the war, with Pakistan serving as the primary go-between. President Donald Trump confirmed the US has had “very good talks” with Iran over the past 24 hours, fuelling hopes of a diplomatic breakthrough.
Officials in Washington and Tehran are reportedly working on a one-page memorandum of understanding to end hostilities and establish a framework for broader nuclear negotiations. Trump told the New York Post it was “too soon” to sign a peace deal, tempering some of the market optimism that sent stocks to record highs on Wednesday.
Iran’s Islamic Revolutionary Guard Corps Navy stated that safe passage through the Strait of Hormuz is now possible under “new procedures.” However, approximately 1,600 ships remain stranded in the waterway, with shipping companies unwilling to risk transit as insurers invoke wartime clauses.
The US military also disabled an Iranian-flagged tanker in the Gulf of Oman after it attempted to sail toward an Iranian port. Diplomatic pressure is mounting as global markets remain highly sensitive to every signal from ongoing negotiations.
