Iran evaluating US proposal to end war as China calls for peace

Salma El Wardany, Jennifer A. Dlouhy and Omar Tamo, Bloomberg News on May 6, 2026

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Iran is evaluating a new proposal from the U.S. to end their near 10-week war, according to a person familiar with the matter, as China added its voice to global diplomatic pressure to wrap up the conflict.

Washington’s one-page memorandum of understanding will, if Iran accepts it, lead to the gradual reopening of the Strait of Hormuz and lifting of the American blockade on Iranian ports, according to the person, who asked not to be identified discussing sensitive information. Nothing has yet been agreed upon, the person said, and detailed negotiations on Iran’s nuclear program will come later in the process.

Axios earlier reported on the plan, which includes provisions for the potential removal of sanctions on Tehran, the person said.

Iran is expected to send a response via mediator Pakistan in the next two days, the person said. At a meeting in Beijing, China’s Foreign Minister Wang Yi urged Iranian counterpart Abbas Araghchi to keep negotiating, saying “a resumption of hostilities is inadvisable.”

Oil plunged on the news, with Brent crude dropping more than 10% to below $100 a barrel for the first time since late April. Global government bonds extended gains as market optimism grew about a resolution to the conflict.

News of the potential breakthrough came as U.S. President Donald Trump comes under increasing pressure to end the war he started alongside Israel at the end of February. The shuttering of Hormuz has blocked a key transit point for global energy supplies, triggering a surge in U.S. gasoline prices to above $4.50 a gallon for the first time since July 2022. That’s piled pressure on the Republican Party ahead of Midterm elections this November.

Trump on Tuesday suspended a military initiative to guide stranded ships though Hormuz after only one day of operations, “to see whether or not the agreement can be finalized and signed.” He cited “great progress” with Iran toward a final agreement, without giving further detail.

The U.S. Hormuz plan — which Trump dubbed Project Freedom — resulted in clashes with Iran and missiles fired at the United Arab Emirates. That forced Washington to insist an almost month-long ceasefire remains in place, and Beijing used a rare public comment on the conflict to warn against a return to fighting.

Israeli Energy Minister Eli Cohen said it may be best to wait and see if the U.S.-Iran deal comes to fruition. “We know the Iranians, they say one thing, they mean something else,” he said in an interview with Army Radio.

Trump said the decision to pause Project Freedom was made at the request of Pakistan — which is helping mediate talks between Washington and Tehran — as well as other countries. He added that a U.S. blockade of ships transiting to and from Iranian ports would “remain in full force and effect.”

Trump has repeatedly said significant progress has been made in negotiations with Iran to end the war, only for nothing substantial to emerge. On Tuesday, Iran’s President Masoud Pezeshkian called the U.S. position unrealistic, saying Tehran wouldn’t “ultimately submit to its unilateral demands.”

Disagreements remain over key issues such as control of Hormuz, where a fifth of the world’s oil and liquefied natural gas flowed before the war brought traffic to a standstill. The U.S. is also demanding an end to Tehran’s nuclear enrichment program.

Washington has made clear it wants to avoid another flareup in violence like the one seen during Project Freedom’s brief spell in operation. Before Trump’s announcement, Secretary of State Marco Rubio told reporters at the White House that offensive operations against Iran were over.

The shipping industry is waiting for a way to guarantee safe passage through Hormuz without ships risking harassment by Iran or any other party, Dimitris Maniatis, the chief executive officer of Greek maritime risk company Marisks, told Bloomberg TV on Wednesday.

The U.S. said the shutdown around Hormuz has left more than 1,550 commercial vessels, carrying some 22,000 sailors, trapped in the Gulf.

Trump and top administration officials have said divisions within Iran are making talks more challenging. Getting a response to a U.S. proposal can take up to a week, Rubio said.

“Their system has always been multilayered in this way. It’s obviously become more complex because of the damage they suffered during the war,” he said.

More related to the war

•Chinese Foreign Minister Wang Yi held talks with Iranian Foreign Minister Abbas Araghchi in Beijing on Wednesday, Xinhua News Agency reported.

•The United Arab Emirates said on Tuesday that its air forces responded to a missile threat, the first such announcement after Iran launched around 20 missiles and drones at the country the previous day.

•The U.S. and its allies backed a draft United Nations Security Council resolution that would open the door to sanctions or even military action if Iran doesn’t ease its chokehold over the strait. The proposal would require support from China and Russia to pass.