The US and Iran may reach an agreement on a memorandum of cessation of war soon, a source in Pakistan close to the mediation efforts told Reuters. He confirmed similar reports from Axios and CNBC.
Pakistan, acting as a mediator in the negotiations between the US and Iran to end the war, confirmed that the parties are close to an agreement on ending hostilities. A memorandum of cessation of war could be reached soon, a source in Pakistan close to the mediation efforts told Reuters on Wednesday, May 6.
"We will finalize this very soon," the source indicated. He confirmed a similar report from the American news portal Axios. The US administration has not yet made any statements regarding a possible agreement with Iran.
Axios: Whitcoff and Kushner Discuss a 14-Point Memorandum with Iran
According to Axios, US envoy Stephen Whitcoff and President Donald Trump's son-in-law Jared Kushner are negotiating with Iranian officials—both directly and through intermediaries—about a memorandum that includes 14 points.
The document provides for 30 days of negotiations to develop a detailed agreement, the publication reports, citing American officials and other sources familiar with the situation. During this period, it is planned to gradually lift the blockade of shipping in the Strait of Hormuz by Iran and the American blockade of Iranian ports, it further notes.
Additionally, the US expects Iran to agree to a moratorium on uranium enrichment, while Washington will lift sanctions and unblock frozen Iranian assets worth billions of dollars. If these negotiations fail, the US may resume the blockade or military actions, Axios further reports, citing an American official. The US expects a response from Iran within 48 hours, the article states.
Markets React with Falling Oil Prices
The plan of the US with 14 points was also reported by CNBC, citing a representative of the Iranian Foreign Ministry. According to this information, the authorities in Tehran are studying this proposal. Earlier, Iranian news agencies reported that Iran had sent the US a peace plan consisting of 14 points.
These reports led to a significant drop in oil prices. The price of European Brent crude oil fell by 11.3% to $97.42 per barrel, dropping below $100 for the first time since April 22. The price of American WTI crude oil decreased by 12.9% to $89.06 per barrel. These are the lowest figures in the past two weeks and the most significant one-day drop in the last month. The price of Brent crude oil reached its highest level since March 2022 last week.
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