Iran and the United States have received a plan to end hostilities that could come into effect on Monday and reopen the Strait of Hormuz, a source aware of the proposals said on Monday.
A framework to end hostilities has been put together by Pakistan and exchanged with Iran and the US overnight, the source said, outlining a two-tier approach with an immediate ceasefire followed by a comprehensive agreement.
"All elements need to be agreed today," the source said, adding the initial understanding would be structured as a memorandum of understanding finalised electronically through Pakistan, the sole communication channel in the talks.
Axios first reported on Sunday that the US, Iran and regional mediators were discussing a potential 45-day ceasefire as part of a two-phase deal that could lead to a permanent end to the war, citing US, Israeli and regional sources.
The source told Reuters Pakistan's army chief, Field Marshal Asim Munir, has been in contact "all night long" with US Vice President JD Vance, special envoy Steve Witkoff and Iranian Foreign Minister Abbas Araqchi.
Under the proposal, a ceasefire would take effect immediately, reopening the Strait of Hormuz, with 15–20 days to finalise a broader settlement. The deal, tentatively dubbed the "Islamabad Accord," would include a regional framework for the strait, with final in-person talks in Islamabad.
There was no immediate response from US and Iranian officials. Pakistan's foreign office spokesperson Tahir Andrabi declined comment.
Iranian officials have previously told Reuters that Tehran was seeking a permanent ceasefire with guarantees they will not be attacked again by the US and Israel. They have said Iran has received messages from mediators including Pakistan, Turkey and Egypt.
The final agreement is expected to include Iranian commitments not to pursue nuclear weapons in exchange for sanctions relief and the release of frozen assets, the source said.
Two Pakistani sources said Iran has yet to commit despite intensified civilian and military outreach.
"Iran has not responded yet," one source said, adding proposals backed by Pakistan, China and the United States for a temporary ceasefire have drawn no commitment so far.
There was no immediate response from Chinese officials to requests for comment.
The latest diplomatic push comes amid escalating hostilities that have raised concerns over disruption to shipping through the Strait of Hormuz, a critical artery for global oil supplies.
US President Donald Trump has in recent days publicly pressed for a rapid end to the conflict, warning of consequences if a ceasefire is not reached within a short timeframe.
The conflict has heightened volatility in energy markets, with traders closely watching any developments that could affect flows through the strait.
