A major diplomatic breakthrough may be within reach after Pakistan announced that the United States and Iran have agreed on the final text of a peace agreement designed to end months of conflict that shook the Middle East and disrupted global energy markets.
Pakistan's Prime Minister Shehbaz Sharif said Friday that a "final, agreed-upon text" has been completed and that Islamabad is now working closely with both Washington and Tehran to finalize the next stage of the process. The announcement represents the clearest indication so far that negotiators may be approaching a formal settlement.
The proposed agreement is expected to reopen the Strait of Hormuz, restore normal maritime traffic and create a framework for winding down military tensions that have threatened regional stability and global oil supplies. Officials familiar with the talks say preparations for a signing ceremony could take place within days if remaining procedural issues are resolved.
According to U.S. officials, the draft agreement includes commitments by Iran regarding its nuclear program, including dismantling key elements of its nuclear weapons capability and accepting a long-term inspection framework. Economic benefits for Tehran would reportedly be phased in only after compliance requirements are met.
However, the path to peace remains complicated. President Donald Trump has sharply criticized reports circulating in Iranian media, accusing Tehran of presenting misleading versions of the proposed agreement. U.S. officials insist that some of the claims regarding immediate sanctions relief and asset releases are inaccurate.
Iran has also sent mixed signals. While senior Iranian officials acknowledge that negotiations have made significant progress and that an agreement has "never been closer," Tehran has previously stated that no final decision had yet been made and has continued to emphasize its negotiating red lines.
Financial markets are closely watching developments because a successful agreement could ease pressure on global energy supplies, stabilize oil prices and reduce geopolitical risks across the Gulf region. The Strait of Hormuz remains one of the world's most important energy corridors, carrying a significant share of global oil shipments.
If formally signed, the agreement would represent one of the most significant diplomatic achievements of the conflict and potentially reshape security dynamics across the Middle East.