Key insights
- Iran responded to a US proposal via Pakistan to end the regional war, focusing on a cessation of hostilities and traffic through the Strait of Hormuz. While a full deal addressing Iran's nuclear program remains distant, a temporary agreement could ease geopolitical tensions and potentially lower oil prices, offering a slight, short-term positive for US equities but the risk remains elevated.
DUBAI, May 10 (Reuters) - Iran has sent its response to a U.S. proposal aimed at ending the more than two-month war to mediator, Pakistan, Iran’s IRNA news agency said on Sunday.
According to Iran’s proposal, the current phase of negotiations will focus exclusively on the cessation of hostilities in the region, a source familiar with the matter told IRNA.
Sources in both camps have told Reuters the latest peace efforts are aimed at a temporary memorandum of understanding to halt the war and allow traffic through the Strait of Hormuz while they discuss a fuller deal, which would have to address intractable disputes such as Iran’s nuclear programme.