Draft U.S.-Iran Peace Plan in the Works

U.S. and Iranian officials say they are getting closer to agreeing on a basic plan to pause the war, though some major disagreements remain, especially about the Strait of Hormuz. For weeks, Pakistan and Qatar have been passing messages between the two sides. Progress has been slow, and both countries have accused each other of dragging things out. Small clashes between U.S. and Iranian forces in recent days have added pressure to reach a deal.

Both sides are discussing a short-term halt to hostilities. Some diplomats say the pause would last 60 days, giving both sides time for deeper negotiations. Iranian officials describe it as a “declaration of the end of war” during talks, including in Lebanon, where fighting between Israel and Hezbollah has continued despite a cease-fire.

However, the handling of the Strait of Hormuz remains one of the hardest issues. The U.S. wants the strait reopened immediately, with its naval blockade slowly reduced as Iran restores normal shipping, and says the waterway must stay open to all ships without tolls. Meanwhile, Iran says the blockade should be lifted within 30 days and that Iran and Oman should be allowed to charge service fees later. Both sides may push long-term decisions about the strait into later talks.

Furthermore, a new idea in the draft is a huge “investment fund,” possibly $300 billion, to help rebuild Iran if a final deal is reached. This would replace Iran’s earlier demand for war reparations. The U.S. would help organize the fund, and American companies might be allowed to invest in Iran.

The draft says that the U.S. and Iran will negotiate Iran’s enriched uranium stockpile in a second phase of talks. Iran has about 970 pounds of uranium that could be quickly enriched to weapons-grade material, as well as much more at lower qualities. Trump has shown some flexibility about where the uranium could go, but he does not want Russia or China to take it. Iran says it will pause its nuclear program if the U.S. agrees not to increase sanctions during negotiations.

Iran wants access to billions of dollars from frozen assets, which is any resource, fund, or property that cannot be sold, transferred, or accessed, that are abroad. This restriction is typically legally enforced, though the term is also used colloquially to describe highly illiquid items. The draft suggests a gradual release of some funds, possibly through other countries like Qatar, since Trump does not want to be seen as sending money directly to Iran. Iran says it wants up to $20 billion released in the Middle East.