Ceasefire Plan Sent to Iran, US to End Conflict

A ceasefire could immediately reopen the Strait of Hormuz. A final deal is expected within 15–20 days, including nuclear curbs and sanctions relief. The proposed settlement has been dubbed the “Islamabad Accord.”

Iran and the United States have received a plan to end hostilities that could come into effect on Monday and reopen the Strait of Hormuz, a source familiar with the proposals said.

A framework to end hostilities was put together by Pakistan and shared overnight with Iran and the United States, the source said. It outlines a two-tier approach: an immediate ceasefire followed by a comprehensive agreement.

“All elements need to be agreed today,” the source added, noting that the initial understanding would be structured as a memorandum of understanding, finalized electronically through Pakistan, which is acting as the sole communication channel in the talks.

Axios first reported on Sunday that the United States, Iran, and regional mediators were discussing a potential 45-day ceasefire as part of a two-phase deal that could lead to a permanent end to the war, citing U.S., Israeli, and regional sources.

The source told Reuters that Pakistan’s army chief, Field Marshal Asim Munir, has been in contact “all night” with U.S. Vice President JD Vance, special envoy Steve Witkoff, and Iranian Foreign Minister Abbas Araqchi.

Under the proposal, a ceasefire would take effect immediately, reopening the Strait of Hormuz, with 15–20 days allocated to finalize a broader settlement. The deal, tentatively called the “Islamabad Accord,” would include a regional framework for the strait, with final in-person talks to be held in Islamabad.

There has been no immediate response from U.S. or Iranian officials. Pakistan’s Foreign Office spokesperson, Tahir Andrabi, declined to comment.

Iranian officials have previously told Reuters that Tehran is seeking a permanent ceasefire with guarantees that it will not be attacked again by the United States or Israel. They added that Iran has received messages from mediators, including Pakistan, Turkey, and Egypt.

The final agreement is expected to include Iran’s commitment not to pursue nuclear weapons in exchange for sanctions relief and the release of frozen assets, the source said.

Two Pakistani sources said Iran has yet to commit, despite intensified civilian and military outreach.

“Iran has not responded yet,” one source said, adding that proposals backed by Pakistan, China, and the United States for a temporary ceasefire have so far received no commitment.

There has also been no immediate response from Chinese officials.

The latest diplomatic push comes amid escalating hostilities that have raised concerns about disruptions to shipping through the Strait of Hormuz, a critical route for global oil supplies.

U.S. President Donald Trump has recently pushed for a rapid end to the conflict, warning of consequences if a ceasefire is not reached within a short timeframe.

The conflict has increased volatility in energy markets, with traders closely monitoring developments that could affect oil flows through the strait.

US, Iran and Mediators Push for 45-Day Ceasefire, Axios Reports

The United States, Iran, and a group of regional mediators are discussing the terms of a potential 45-day ceasefire that could lead to a permanent end to the war, Axios reported, citing four U.S., Israeli, and regional sources familiar with the talks.

Reuters could not immediately verify the report. The White House and the U.S. State Department did not respond to requests for comment.

According to the report, mediators are discussing a two-phase deal. The first phase would involve a 45-day ceasefire, during which negotiations for a permanent end to the war would take place.

The second phase would include a formal agreement to end the war.

The ceasefire could be extended if more time is needed for negotiations.

U.S. President Donald Trump told the Wall Street Journal that his deadline for Iran to reopen the Strait of Hormuz—or face potential attacks on critical infrastructure—is Tuesday evening.

Oil Markets React

U.S. oil prices rose more than 11%, while Brent crude increased nearly 8% in volatile trading, as traders feared prolonged disruptions to oil supply following President Trump’s statement that the United States would continue attacks on Iran.

Brent crude futures rose $7.87, or 7.78%, to close at $109.03 per barrel.

U.S. West Texas Intermediate (WTI) crude futures rose $11.42, or 11.41%, to $111.54 per barrel—marking their largest absolute daily price increase since 2020. Courtesy Reuters