US President Donald Trump confirmed on Tuesday that his administration is engaged in negotiations with Iran to end the ongoing war in the Middle East. "They are talking to us, and they are talking sense," Trump stated when questioned about the potential for conflict resolution. This follows earlier dismissals from Iran, which labeled Trump's prior negotiation claims as "fake news" and an attempt to manipulate financial markets.
According to a report from the New York Times, the United States has delivered a detailed 15-point peace proposal to Tehran. The framework, reportedly shaped by Trump advisers Jared Kushner and Steve Witkoff, was passed through Pakistan, whose army chief has acted as a key intermediary. The plan aims to establish an immediate 30-day ceasefire, during which a broader settlement could be formalized. Key demands from Washington include the full dismantling of Iran's nuclear weapons capabilities, a pullback from its regional proxy networks, and guarantees to keep the Strait of Hormuz open for navigation.
In return, the proposal offers significant concessions, including the removal of all sanctions on Iran, US assistance for a civilian nuclear energy program focused on electricity generation, and the removal of the threat posed by the UN "snapback" mechanism for sanctions. Despite these offers, Iran has not publicly acknowledged receiving the plan. Iranian armed forces issued a statement on Wednesday explicitly ruling out ceasefire discussions with the Trump administration, accusing the US of negotiating with itself due to internal conflicts.
The geopolitical news triggered immediate reactions in global markets. Oil prices dropped sharply, with West Texas Intermediate crude falling to around $87 a barrel and Brent crude dropping nearly 6% to below $95. Conversely, US stock futures rose, with S&P 500 and Dow Jones futures gaining around 1.1%, reflecting cautious optimism that a de-escalation could ease pressure on energy markets. The conflict, which began on February 28, has already resulted in over 4,300 fatalities and has severely disrupted shipping through the critical Strait of Hormuz, with Iran now charging transit fees of up to $2 million per voyage for some commercial vessels.
Significant obstacles remain. Iran's public stance remains one of denial and suspicion. Furthermore, Israel, with Prime Minister Benjamin Netanyahu having appointed a confidant to monitor the talks, represents a major complication, as its view of an acceptable endgame may be much narrower than Washington's. Overnight attacks continued, with Saudi Arabia intercepting a drone and a strike in Kuwait setting a fuel tank ablaze, underscoring the persistent volatility in the region.
