Economy April 6, 2026

Framework Offered to Iran and U.S. Aims to Halt Fighting and Reopen Strait of Hormuz

Pakistan-delivered plan envisions an immediate ceasefire followed by broader negotiations under an Islamabad-hosted accord

By Priya Menon
Framework Offered to Iran and U.S. Aims to Halt Fighting and Reopen Strait of Hormuz

Pakistan has circulated a two-stage framework to Iran and the United States intended to end hostilities and reopen the Strait of Hormuz. The proposal, which could take effect as early as Monday, calls for an immediate ceasefire and a subsequent comprehensive agreement to be negotiated and finalized, with Pakistan acting as the primary communication channel.

Key Points

  • Pakistan has circulated a two-stage framework to Iran and the United States seeking an immediate ceasefire and a broader settlement.
  • The initial understanding would be formalized as a memorandum of understanding, finalized electronically through Pakistan, which has been the sole communication channel.
  • High-level contacts have taken place overnight, with Pakistan's army chief Field Marshal Asim Munir speaking with U.S. Vice President JD Vance, special envoy Steve Witkoff and Iranian Foreign Minister Abbas Araqchi.

Pakistan has presented a framework to both Iran and the United States that seeks to halt fighting and restore navigation through the Strait of Hormuz, according to a person familiar with the proposals. The plan, delivered overnight, follows a two-stage approach: an immediate cessation of hostilities followed by a broader, more comprehensive settlement.

The source said the proposal could be implemented as early as Monday. Officials working the discussions have been told that "all elements need to be agreed today," and that the first, interim understanding would be established as a memorandum of understanding to be finalized electronically via Pakistan, which has functioned as the sole conduit for communication in these exchanges.

Pakistan's army chief, Field Marshal Asim Munir, has been directly engaged in outreach related to the package, speaking "all night long" with senior U.S. and Iranian officials. The contacts included U.S. Vice President JD Vance, special envoy Steve Witkoff and Iranian Foreign Minister Abbas Araqchi, the source said.

Media reporting earlier indicated that a potential two-phase plan being discussed could include a 45-day ceasefire as an initial step, drawing on accounts from U.S., Israeli and regional sources. Under that concept, a ceasefire would take effect immediately and reopen the Strait of Hormuz, with a 15- to 20-day window allocated to craft a broader settlement. The arrangement, referred to by some as the "Islamabad Accord," envisages a regional framework for the Strait with final in-person negotiations to occur in Islamabad.

The prospective final deal is described as likely to include Iranian commitments not to pursue nuclear weapons in return for sanctions relief and the release of frozen assets. Those provisions are positioned as part of a comprehensive agreement intended to address core security and economic elements tied to the conflict.

Despite intensified outreach and backing from Pakistan, China and the United States for a temporary ceasefire, at least two Pakistani sources said Iran had not yet committed to the proposal. "Iran has not responded yet," one source said, indicating that the offers put forward so far had not secured an affirmative reply.

At this stage, the package remains a framework requiring agreement from all parties involved. Pakistan has been serving as the intermediary in electronic and direct contacts as negotiators push for rapid concurrence on the immediate ceasefire and continued talks toward a permanent settlement.

Risks

  • Iran had not committed to the proposals at the time of reporting, leaving the success of an immediate ceasefire uncertain - this uncertainty could affect shipping, insurance and energy sectors tied to Strait of Hormuz transit.
  • The framework requires all elements to be agreed quickly, creating execution risk if parties fail to reach consensus within the narrow window described - this affects markets sensitive to geopolitical disruptions, including oil and freight.
  • Plans depend on subsequent negotiations and reciprocal commitments, such as Iranian constraints on nuclear pursuits in exchange for sanctions relief and frozen assets, which introduces negotiation and implementation risk for broader economic and financial sectors.

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