Pakistani mediators said a 14-point, one-page draft is close, while Trump paused Hormuz escort missions and Brent crude fell about 11% to around $98.
The proposed deal would formally end fighting, then open 30 days of talks on shipping through the strait, US sanctions relief, frozen Iranian funds and limits on Iran's nuclear programme.
A French container ship was hit in the strait, injuring crew, as Iran demanded a fair, comprehensive agreement and key past US demands on missiles, proxies and existing enriched uranium remained unaddressed.
As US and Iranian red lines on uranium enrichment clash, is a permanent peace possible or just a temporary truce?
With oil prices soaring, can a fragile nuclear deal truly secure the world’s most vital waterway?
US-Iran 14-Point Peace Proposal Rejected: Strait of Hormuz Blockade Sparks Global Energy Crisis
Overview
In April 2026, Iran proposed a 14-point peace plan demanding a ceasefire, US troop withdrawal, sanctions relief, and recognition of its nuclear rights. The US rejected this plan, insisting on complete dismantling of Iran's nuclear weapons and an end to Iran's blockade of the Strait of Hormuz. In response to Iran's blockade, the US imposed a naval blockade on Iranian ports and launched a major military operation, Project Freedom, escalating tensions. These blockades caused a severe maritime logjam, spiking global oil prices and triggering an energy crisis that heavily impacted Asian economies. Diplomatic efforts remain stalled amid deep mistrust, with regional proxy conflicts and military actions further complicating prospects for peace.