Iranian state TV reveals draft framework

Iran's state television reported on Wednesday that Tehran had obtained a draft of an initial, unofficial memorandum of understanding with the United States to end their three‑month‑old conflict. The reported framework would see Iran restore commercial shipping through the Strait of Hormuz to pre‑war levels within a month, while the US withdraws military forces from Iran's vicinity and ends its naval blockade. State TV stressed the document was not finalised and might never be agreed, adding that Tehran would take no steps without “tangible verification.” It also said that if a final agreement were reached within 60 days, it could become a binding UN Security Council resolution.

White House and Trump push back

“The report is a complete fabrication.”

US President Donald Trump told a cabinet meeting on Wednesday that he was “not satisfied” with the terms being discussed. He said Iran was “very much intent” on reaching an accord but “so far they haven't gotten there.” Secretary of State Marco Rubio struck a more cautious note, saying there had been “some progress” and that the next “few hours and days” would show whether a deal was possible. Both officials declined to address the 14 points detailed by Iranian media.

Oil market tumbles on hope of eased supply

Oil prices fell more than 5% on Wednesday after the Iranian TV report. Brent crude futures dropped to an intraday low of $94.16 a barrel, while West Texas Intermediate touched $87.77. The losses more than erased the previous session's gains, driven by a pick‑up in tanker traffic through the Strait of Hormuz. Still, analysts warned that actual oil flows remained severely restricted. PVM's Tamas Varga noted that palpable progress was applying downward pressure, while UBS's Giovanni Staunovo cautioned:

“There is no indication that this is something different than what we kept hearing since the weekend, and the Iranians have indicated a deal is not imminent.”

Sticking points: nuclear programme and waterway control

The reported draft excluded any mention of Iran's nuclear programme, which Washington insists must be dismantled — a core demand that prompted the February strikes. Iranian sources have indicated nuclear talks would come in a second round, something Trump's closest supporters may find unacceptable. The draft also envisages Iran managing ship traffic through the Strait of Hormuz in cooperation with Oman, sidelining US naval oversight. The US military currently has about 15,000 troops enforcing the blockade, with thousands more stationed at bases in Qatar, the UAE and Bahrain.

Diplomatic backdrop and regional tensions

The emerging framework stems from indirect talks launched after the 28 February US‑Israeli strikes on Iran, with Pakistan playing a central mediating role. A ceasefire has largely held since 8 April, though both sides have accused each other of violations. Iran's intelligence ministry separately warned that Washington and Tel Aviv still seek to “overthrow and partition” the Islamic Republic through economic pressure and sabotage, including the smuggling of Starlink devices.