Regional mediators are reportedly close to a proposal that could restart the US-Iran memorandum of understanding, although Tehran continues to deny seeking renewed talks with Washington.
Summary
- Pakistan, Egypt and Qatar are reportedly pushing a plan to revive the US-Iran MoU.
- Iran and Oman have reportedly accepted a proposal addressing disputes over the Strait of Hormuz.
- Tehran denies requesting negotiations and wants greater control over shipping routes through the strait.
- Brent crude fell 4.8% to $84.09 as markets responded to reduced hostilities.
Mediators push US-Iran MoU revival
Pakistan, Egypt and Qatar have stepped up efforts to revive the US-Iran framework signed last month, according to two sources cited by The Times of Israel.
The mediators have developed a proposal aimed at resolving conflicting interpretations of how the MoU applies to the Strait of Hormuz. Iran argues that the agreement gives it some authority over operations in the waterway, while Washington maintains that it does not.
Iran and Oman have reportedly approved the mediators’ proposal. A final decision now rests with US President Donald Trump, according to the report. The White House had delayed its response until after Trump met Israeli Prime Minister Benjamin Netanyahu in Washington.
Reaching an agreement would allow the US and Iran to restart negotiations before the MoU’s 60-day window expires next month. However, neither Washington nor Tehran has publicly confirmed that a new round of talks has been scheduled.
Strait of Hormuz remains the main dispute
Tehran has offered Oman a temporary system under which one direction of maritime traffic would pass through Iranian waters, with part of the opposite route also placed under Iranian control.
Iran rejected an Omani proposal to divide the shipping routes equally between the two countries. Deputy Foreign Minister Kazem Gharibabadi argued that the plan did not address Iran’s security concerns, according to Reuters.
Gharibabadi said the strait would remain closed if Oman rejected Tehran’s alternative. He also warned that Iran would not allow a third country to clear mines from the waterway, even if Oman invited it to participate.
At the same time, the Iranian official rejected reports that Tehran had approached Washington.
“Iran has not made any requests for negotiations or ceasefire with the US in the past 17 days,” Gharibabadi said.
He claimed that Washington had instead sought dialogue through Oman and offered assurances that the US would not take further military action. The US has not publicly confirmed those claims.
Oil drops as markets price in lower conflict risk
Crude prices fell sharply as the pause in US-Iran attacks raised hopes that diplomacy could resume, even without confirmation of a breakthrough.
Brent crude futures dropped 4.8% to settle at $84.09 per barrel on Tuesday, while US West Texas Intermediate declined 4.1% to $79.26. Both benchmarks reached their lowest levels in about two weeks.
Brent has now fallen about 16% over three sessions. However, shipping through the Strait of Hormuz remains limited, leaving energy markets exposed to another increase in tensions.
For US consumers and investors, a lasting agreement and fuller reopening of the strait could reduce pressure on fuel costs and inflation. That effect remains uncertain while the maritime dispute and the broader conflict remain unresolved.
What comes next for US-Iran talks
Trump and Netanyahu discussed Iran during their White House meeting, which the US administration described as “positive and productive.”
Netanyahu later said the two leaders shared the goal of preventing Iran from obtaining nuclear weapons. However, neither side announced whether Trump had approved the mediators’ proposal following the meeting.
The next signal will likely come from Washington, Oman, or the three regional mediators. Until then, reports of progress remain at odds with Tehran’s public denial that formal US-Iran negotiations are underway.
