US and Iran closing in on memorandum to end war, Pakistani source says

The United States and Iran are closing in on an agreement on a one-page memorandum to end the war in the Gulf, a source from mediator Pakistan familiar with the negotiations said.

The Pakistani source said a report earlier by the US media outlet Axios on the proposed memorandum was accurate. The Axios report had cited two US officials and two other sources familiar with the discussions.

"We will close this very soon. We are getting close," the Pakistani source said.

Axios reported on Wednesday that the White House believed it was closing in on a one-page memorandum to end the war with Iran, after US President Donald Trump paused a three-day-old naval mission to reopen the Strait of Hormuz.

The Axios report said the US expected Iranian responses on several key points in the next 48 hours. The US State Department and White House did not immediately respond to requests for comment.

Among other provisions, Axios said, the deal would involve Iran committing to a moratorium on nuclear enrichment, the US agreeing to lift its sanctions and release billions of dollars in frozen Iranian funds, and both sides lifting restrictions around transit through the Strait of Hormuz.

14-POINT MEMORANDUM OF UNDERSTANDING

The one-page, 14-point memorandum of understanding was being negotiated between US envoys Steve Witkoff and Jared Kushner and several Iranian officials, both directly and through mediators, Axios said.

In its current form, the memorandum would declare an end to the war in the region and the start of a 30-day period of negotiations on a detailed agreement to open the strait, limit Iran's nuclear programme and lift US sanctions, Axios added.

Iran's restrictions on shipping through the strait and the US naval blockade of Iran would be gradually lifted during that 30-day period, Axios said, citing one US official who added that if the negotiations collapse, US forces would be able to restore the blockade or resume military action.

Earlier, Trump announced a pause to "Project Freedom", a mission announced on Sunday to guide ships through the blocked strait. The mission had failed to bring about any significant resumption of traffic through the waterway, while provoking a new wave of Iranian strikes on ships in the strait and on targets in neighbouring countries.

In the latest incident, a French shipping company reported on Wednesday that one of its container ships had been struck in the strait the previous day, and that injured crew had been evacuated.

In announcing he was pausing the mission, Trump cited "great progress" in negotiations with Iran, without giving further details. 

Trump had launched the naval mission to guide ships through the strait after saying he was likely to reject Iran's latest proposal. The Iranian offer, made last week, also contained 14 points. It called for setting aside discussion of nuclear issues until after the war ended and the shipping dispute was resolved.

In comments on a visit to China on Wednesday, Iran's Foreign Minister Abbas Araqchi made no mention of Trump's latest remarks, but said Tehran was holding out for "a fair and comprehensive agreement".

Araqchi also said in a social media post that he had spoken by phone with the foreign minister of Saudi Arabia and had stressed the importance of diplomacy among regional states to prevent escalation.

Iran has effectively shut the strait to all shipping apart from its own since the United States and Israel launched the war on February 28. In April, Washington imposed its own separate blockade of Iranian ports.