The United States and Iran are working toward a short-term agreement aimed at halting their ongoing conflict with Tehran reviewing a proposal that would pause fighting without resolving core disputes.

Axar.az reports, citing Reuters, the emerging framework centers on a temporary memorandum rather than a comprehensive peace deal, reflecting deep divisions between the two sides, particularly over Iran’s nuclear program and regional security issues.

According to sources briefed on the discussions, the proposed plan outlines a phased approach that includes an initial cessation of hostilities, steps to stabilize maritime traffic through the Strait of Hormuz, and a 30-day window for broader negotiations.

U.S. President Donald Trump has publicly signaled optimism about a breakthrough, saying it is “very possible” that a deal could be reached, while Iranian officials have taken a more skeptical tone, describing the proposal as incomplete and unbalanced.

The draft memorandum reportedly leaves out several key U.S. demands, including limits on Iran’s missile program and restrictions on support for regional proxy groups, issues that Tehran has repeatedly rejected. It also does not address Iran’s stockpile of enriched uranium, a central concern for Washington.

Markets reacted positively to the possibility of de-escalation, with oil prices falling and global equities rising on expectations that disruptions to energy flows—particularly through the Strait of Hormuz—could ease if tensions subside.