The United States and Iran are circling a fresh proposal to end the ongoing war, as President Donald Trump seeks an exit from a conflict that has driven up energy prices and damaged his political standing. Washington has presented a one-page memorandum of understanding that would gradually reopen the Strait of Hormuz and lift the American blockade on Iranian ports, according to a person familiar with the measure, who requested anonymity due to the sensitivity of the information. Detailed negotiations over Iran's nuclear program would follow later in the process, the source added, emphasizing that nothing has been finalized yet.
Trump's Urgency Amid Energy Crisis
The initial offer caps a chaotic 48-hour period that underscores the bind Trump faces as he attempts to defuse an energy crisis he helped create by attacking Iran alongside Israel in late February. The move came after Trump suspended a short-lived U.S. mission to provide safe passage for commercial ships through the strait, a critical waterway for oil and gas shipments. Adding to his urgency is a scheduled summit next week with Chinese President Xi Jinping, which was already postponed earlier in the conflict due to the Middle East backdrop.
Polls indicate growing American discontent with the war, just six months before midterm elections where prices will be a central issue. Gasoline prices have exceeded $4.50 per gallon for the first time since July 2022, according to the American Automobile Association. This trend challenges Trump's predictions that fuel costs would plummet once the war ends.
Market Reactions and Negotiation Details
Stocks rose and oil prices retreated on Wednesday, with benchmark Brent crude settling at $101.27 per barrel, as investors weighed the latest developments. Trump has repeatedly hinted that a deal is imminent, though none has materialized. He acknowledged to the New York Post that it might be "too soon" to consider face-to-face talks to finalize such an agreement.
Iran is expected to respond via Pakistan, acting as a mediator, within the next two days, the source said. State media have indicated that parts of the U.S. proposal remain unrealistic to Iran's leadership. The new peace plan includes provisions for the removal of sanctions on Iran and a moratorium on its uranium enrichment program, the source added. All conditions could be reversed if a broader nuclear deal cannot be reached.
Trump's Social Media Post
Trump posted on social media: "The U.S. will end its military campaign and lift its blockade of Hormuz, assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption. If they don't agree, the bombing starts." He did not provide details of the proposal.
Israeli Concerns and Regional Developments
In Israel, the prospective deal has caused concern, with Prime Minister Benjamin Netanyahu's government pledging to maintain pressure on Iran until it is fully defeated and its nuclear, missile, and proxy militia programs are dismantled. Netanyahu is holding talks with American officials to better understand the situation, CNN reported, citing an unidentified Israeli source.
The Israeli army carried out an attack in the southern suburbs of Beirut on Wednesday, the first in the vicinity of the Lebanese capital since the U.S.-brokered ceasefire took effect last month. The assault targeted a Hezbollah commander, though his death has not been officially confirmed.
International Diplomacy
At a meeting in Beijing, Chinese Foreign Minister Wang Yi urged Iranian counterpart Abbas Araghchi to continue negotiating, stating that "a resumption of hostilities is inadvisable." Araghchi expressed appreciation for a four-point proposal China offered on resolving the war. Trump and Xi are scheduled to meet in Beijing on May 14-15, with the U.S. leader acknowledging that the conflict would be on the agenda. Trump told PBS News that the U.S. would offer sanctions relief to Iran if the deal is secured, potentially rendering unnecessary any U.S. penalties on Chinese banks buying Iranian oil.
