(Updated with oil move, analyst quote, IRGC Navy report)
The U.S. is reportedly getting close to a deal with Iran on a one-page memorandum of understanding to end the conflict.
The memorandum is expected to set a detailed plan for comprehensive nuclear talks between the two countries, reports said, citing two U.S. officials and two other sources.
However, reports suggested that Iran has yet to respond to the U.S. proposals, which contain some unacceptable provisions, according to Iran's Tasnim News Agency.
Reports also suggested that the IRGC Navy has ensured the safe passage of vessels through the Strait of Hormuz.
The news comes a day after U.S. officials indicated that recent Iranian strikes had not derailed a fragile cease-fire, even as American forces continue operations to support commercial shipping through the Strait of Hormuz.
Washington also expects Iran to respond to several key points in the next 48 hours, according to the report.
West Texas Intermediate crude (CL1:COM) fell 6% to $96.2 a barrel, while Brent crude (CO1:COM) dropped 6.1% to $103.2.
"I also worry about the mention of the HEU being sent to the U.S., which Iran has consistently rejected. On the other hand, seems the U.S. has accepted the phased approach, where the war ends and the blockade is lifted before nuclear issues are addressed," Gregory Brew, senior analyst at Eurasia Group, said.
The agreement would also see Iran commit to a pause in nuclear enrichment, while the U.S. would lift sanctions and release billions in frozen Iranian assets. Both sides would also ease restrictions on transit through the Strait of Hormuz, reports said.
The one-page, 14-point memorandum of understanding is being discussed between U.S. envoys Steve Witkoff and Jared Kushner and many Iranian officials, the report said. The MoU is also expected to declare the end of the war in the region and the start of a 30-day period of negotiations on the agreement.
