LIVE: US and Iran ‘close to agreement to end war’

Oil prices have dropped following reports the US and Iran are close to an agreement to end the war.

International benchmark Brent has slid under $100 a barrel amid hopes for an end to the conflict in the Middle East.

Brent North Sea crude slumped 9.3 per cent to $99.64 a barrel, while the main US oil contract, West Texas Intermediate, plunged 10.7 per cent to $91.33.

European stock markets in Paris and Frankfurt also surged by three per cent while London’s FTSE 100 index rose by 2.3 per cent at midday.

Shehbaz Sharif (L) greeting Iran’s Foreign Minister Abbas Araghchi

Pakistan’s Prime Minister Shehbaz Sharif has lauded Donald Trump for his leadership after the President paused Project Freedom last month.

Pakistan has played a leading role in mediation efforts to end the war with Islamabad hosting high-level talks between the US and Iran.

Sharif wrote on X:

I am grateful to President Donald Trump for his courageous leadership and timely announcement regarding the pause in Project Freedom in the Strait of Hormuz.

President Trump’s gracious response to the request made by Pakistan and other brotherly countries, particularly the Kingdom of Saudi Arabia and my dear brother Crown Prince and Prime Minister of Saudi Arabia H.R.H Prince Mohammed bin Salman, will go a long way towards advancing regional peace, stability and reconciliation during this sensitive period.

Last night Donald Trump announced a pause to ‘Project Freedom’, a mission to guide ships through the blocked strait.

The mission had failed to bring about any significant resumption of traffic through the waterway, while provoking a new wave of Iranian strikes on ships in the strait and on targets in neighbouring countries.

In the latest incident, a French shipping company reported on Wednesday that one of its container ships had been struck in the strait the previous day, and that injured crew had been evacuated.

In announcing he was pausing the mission, Trump cited ‘great progress’ in negotiations with Iran, without giving further details.

‘We have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the Agreement can be finalized and signed,’ Trump wrote on social media.

Iranian state media branded the move as a ‘retreat’ after the US President’s ‘continued failures’ to use American naval power to reopen the crucial waterway.

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US envoys Jared Kushner (left) and Steve Witkoff are leading negotiations

The one-page memorandum of understanding at the centre of the US and Iran peace deal is said to contain 14 points.

According to Axios, the terms are being negotiated between US envoys Steve Witkoff and Jared Kushner and several Iranian officials, both directly and through mediators.

In its current form, the memorandum would declare an end to the war in the region and the start of a 30-day period of negotiations on a detailed agreement to open the strait, limit Iran’s nuclear programme and lift US sanctions, Axios added.

Iran’s restrictions on shipping through the strait and the US naval blockade of Iran would be gradually lifted during that 30-day period, Axios said, citing one US official who added that if the negotiations collapse, US forces would be able to restore the blockade or resume military action.

the US reportedly expect Iranian responses on several key points in the next 48 hours.

Good morning and welcome to our live coverage of the Iran war as it is reported Washington and Tehran are closing in on an agreement to end the conflict.

Multiple outlets are reporting the US and Iran are nearing consensus on a one-page memorandum with a Pakistani insider close to the negotiations saying, ‘We will close this very soon. We are getting close’.

It comes hours after Donald Trump announced a pause to ‘Project Freedom’, a mission launched on Monday to guide ships through the blocked strait.

The mission had failed to bring about any significant resumption of traffic through the waterway, while provoking a new wave of Iranian strikes on ships in the strait and on targets in neighbouring countries.

In the latest incident, a French shipping company reported on Wednesday that one of its container ships had been struck in the strait the previous day, and that injured crew had been evacuated.

Stick with us for the latest developments throughout the day.