Trump Circulates $12 Billion Iran Peace Draft as Ceasefire Strains Around Hormuz
Updated
Updated · The Guardian · May 28
Trump Circulates $12 Billion Iran Peace Draft as Ceasefire Strains Around Hormuz
13 articles · Updated · The Guardian · May 28
A draft Trump sent to allies including Israel would reopen the Strait of Hormuz, lift the US blockade of Iranian ports and release up to $12 billion in frozen Iranian assets.
The push comes as the 8 April ceasefire looks increasingly fragile: Iran struck a US base in Kuwait after Washington hit what it called an Iranian drone operation near Hormuz, and oil rose 2% while staying below $100 a barrel.
Pakistan's foreign minister will travel to Washington on Friday to accelerate indirect talks, with the proposal envisioning 60 days of negotiations on Iran's nuclear program, including enriched uranium, a temporary enrichment pause and IAEA oversight.
Israel is likely to resist the framework because it delays firm Iranian nuclear commitments and ties a permanent ceasefire to Lebanon, while Tehran still demands unconditional access to frozen funds and clearer sanctions relief on oil exports.
Hormuz remains the main flashpoint: the IRGC said 26 commercial vessels were cleared in 24 hours and warned permission is mandatory, as China pushes for any eventual deal to win UN Security Council ratification.
With Israel opposed and China as guarantor, can Trump's Iran peace deal actually prevent a wider Middle East war?
Iran plans a $100 billion toll on Hormuz shipping. Is this the new price for global trade security?
Negotiating Peace in the US-Iran 2026 War: Draft Agreement, Strait of Hormuz, and Economic Fallout
Overview
As of May 28, 2026, the United States and Iran are locked in tense, high-stakes negotiations over a draft agreement, with both sides facing persistent strains and the risk of escalating pressure. Recent diplomatic efforts, including talks in Qatar led by Iran’s parliament speaker and earlier face-to-face meetings in Pakistan, show a commitment to dialogue. However, the US is increasing pressure by targeting Iranian airlines, aiming to influence Iran’s actions. This delicate balance between progress and potential collapse is being closely watched by global markets, highlighting the fragile and uncertain state of US-Iran relations.