The United States and Iran are negotiating a 14-point [1] peace proposal intended to end the war that began in February 2026.

The agreement is critical because it seeks to prevent further military escalation and restore commercial shipping through the Strait of Hormuz, one of the world's most vital oil transit points.

According to reports, the proposal outlines specific demands from both nations. Iran is seeking reparations, relief from economic sanctions, and the full withdrawal of U.S. troops [1]. In exchange, the U.S. is demanding the lifting of oil sanctions and the immediate reopening of the Strait of Hormuz [2].

Diplomatic efforts have intensified this month, with reports indicating that the Pakistani interior minister has been present in Iran to facilitate discussions [3]. The negotiations come as the conflict enters its fourth month [4].

Both governments said the framework is designed to stop the fighting and stabilize the region. President Donald Trump said he would wait two days [5] for a formal response from Iranian officials regarding the terms.

While the specific details of the reparations remain undisclosed, the 14-point [1] plan represents the most comprehensive attempt to date to resolve the current hostilities. The focus remains on balancing security guarantees with economic incentives to ensure a lasting ceasefire.

The proposal includes Iranian demands for reparations, sanctions relief, and U.S. troop withdrawal.

This proposal marks a shift from active combat to diplomatic leverage, using the Strait of Hormuz as a primary bargaining chip. If successful, the deal would not only end the immediate war but also fundamentally reshape the U.S. military presence in the region and the global oil market's stability.