US, Iran closing in on one-page memo to end war - Axios

The report said this was the closest the two sides had come to a deal since the war began, although nothing has been agreed.

Meanwhile, a Pakistani source involved in mediation efforts told Reuters that Tehran and Washington were close to agreeing on the one-page memorandum to end the war, confirming the Axios report.

“We will close this very soon. We are getting close,” the source said.

Iran leadership divided

The White House believes Iran’s leadership is divided, which could complicate efforts to reach consensus, while some US officials remain skeptical that even an initial deal will be achieved, according to Axios.

It added that US President Donald Trump’s decision to pause the planned Project Freedom operation in the Strait of Hormuz was based on progress in the talks.

Reopening the Strait of Hormuz

A proposed one-page, 14-point memorandum of understanding would declare an end to hostilities and start a 30-day period of talks on a detailed agreement, according to Axios.

Those negotiations would focus on reopening transit through the Strait of Hormuz, limiting Iran’s nuclear program and lifting US sanctions. Talks could take place in Islamabad or Geneva, two sources said.

Iran’s restrictions on shipping and the US naval blockade would also be eased during the 30-day period, a US official said, adding that Washington could quickly restore the blockade or resume military action if talks collapse.

The US imposed the blockade in April to pressure Iran after talks failed, while Tehran restricted transit through the strait in response.

Uranium enrichment

Under the draft, Iran would commit to a moratorium on uranium enrichment, while the United States would gradually lift sanctions and release billions of dollars in frozen Iranian funds, sources told Axios.

The duration of the enrichment freeze remains under negotiation, with sources saying it could last at least 12 years, possibly extending to 15, compared with Iran’s proposal of five years and a US demand for 20.

Two sources said Iran could also agree to remove its highly enriched uranium from the country, a key US demand that Tehran has previously rejected.

The draft would also include commitments by Iran not to pursue nuclear weapons, accept enhanced UN inspections including snap checks, and potentially halt operations at underground facilities, a US official said.

Pakistan’s Prime Minister Shehbaz Sharif praised US President Donald Trump on Wednesday for announcing a pause in Project Freedom in the Strait of Hormuz.

Sharif said Trump’s response to requests by Pakistan and other countries, particularly Saudi Arabia, “will go a long way towards advancing regional peace, stability and reconciliation during this sensitive period.”

He said Pakistan remained committed to supporting restraint and a peaceful resolution of conflicts through dialogue and diplomacy.

“We are very hopeful that the curent momentum will lead to a lasting agreement that secures durable peace and stability for the region and beyond,” he said.

The report said small Chinese firms were openly marketing items including engines, batteries, fiber-optic cables and computer chips that can be used in military drones.

The newspaper highlighted Xiamen Victory Technology, a Chinese company that offered to sell German-designed Limbach L550 engines, which the US has barred from export to Iran and Russia. The engines have been linked to Iran’s Shahed-136 attack drones, which Russia has used in Ukraine, the report said.

The Shahed-136, Iran’s main attack drone, has a range of about 1,000 miles and costs an estimated $20,000 to $50,000 to produce, making it a cheaper alternative to cruise missiles.

According to the Journal, the company sent the marketing email in March during the Iran-Israel war that began in February and has since moved into a ceasefire.

“We are deeply shocked and outraged by the aggression against Iran, and our hearts are with you,” the email said, while promoting the sale of the engines.

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Chinese firms adapt to sanctions

China’s Foreign Ministry told the Journal that Beijing enforces controls on dual-use exports in line with its laws and international obligations.

The report said US officials are increasingly concerned because many drone parts are now made in China by smaller firms that have limited exposure to the US financial system and are less vulnerable to sanctions.

The Journal also said Chinese exports of lithium-ion batteries and fiber-optic cables to Russia and Iran rose sharply as both countries expanded drone production and use.

US officials told the newspaper they are also trying to curb Iran’s oil revenue to limit funding for drone and missile programs.

The Wall Street Journal reported that some Chinese firms previously hid shipments through mislabeled cargo or Hong Kong shell companies, but analysts and former officials said some exporters are now acting more openly.

Iran’s internet blackout entered its 68th day on Wednesday after 1,608 hours, internet monitor NetBlocks said.

“The general public have now been largely cut off from the global internet for 70% of the year 2026 to date, with some reporting no contact since the beginning of the first digital shutdown in January,” it added in a post on X.

China said on Wednesday that a complete cessation of hostilities was of “utmost urgency” and that continuing negotiations remained “of paramount importance” after Iranian Foreign Minister Abbas Araghchi met China’s top diplomat Wang Yi in Beijing.

China’s foreign ministry said Wang told Araghchi that China was “a reliable strategic partner of Iran” and expressed hope that parties involved would respond to international calls to ensure safe passage through the Strait of Hormuz. The meeting came shortly before US President Donald Trump is scheduled to meet Chinese President Xi Jinping.

Araghchi said China was a “close friend” of Iran and that bilateral cooperation “will even become stronger under current circumstances,” according to Iran’s state media. Referring to talks with Washington, he said: “We will do our best to protect our legitimate rights and interests in the negotiations ... We only accept a fair and comprehensive agreement.”