Washington and Tehran are exploring a temporary arrangement to halt the ongoing conflict in the Gulf, with Iranian officials currently reviewing the U.S. draft proposal.

The proposed memorandum is intended as a short-term measure rather than a comprehensive peace accord. It would focus on ending military operations and reopening the Strait of Hormuz to commercial shipping, while postponing tougher issues such as Iran’s nuclear activity and sanctions relief for later negotiations.

Pakistan has been facilitating indirect discussions between the two sides and is expected to relay Iran’s response. According to people familiar with the talks, the framework could unfold in phases: a formal end to the fighting, followed by steps to normalize maritime traffic, then a 30-day period for wider diplomatic talks.

The prospect of a deal has already shifted market sentiment. Crude oil prices eased on Thursday as traders anticipated fewer risks to global energy supplies, while stock markets edged higher on optimism about reduced geopolitical strain.

A ceasefire has been in place since early April, but more than 1,500 vessels remain stalled in the region, contributing to higher fuel costs. If both sides agree to the memorandum, it would be the first concrete step toward de-escalation since the hostilities began two months ago.