A woman carries an Iranian flag in Tehran, on March 26, 2026. (Credit: Majid Asgaripour/WANA/Reuters)
BEIRUT — Iran and the United States received a plan on Monday that would see the end of hostilities and the reopening of the Strait of Hormuz, a source aware of the proposals told Reuters on Monday.
The plan was put together by Pakistan and exchanged with Iran and the U.S. overnight, the source said, outlining a two-tier approach with an immediate cease-fire 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 finalized electronically through Pakistan, the sole communication channel in the talks.
Axios first reported on Sunday that the United States, Iran, and regional mediators were discussing a potential 45-day cease-fire as part of a two-phase deal that could lead to a permanent end to the war, citing U.S., Israeli, and regional sources.
The source told Reuters Pakistan's army chief, Field Marshal Asim Munir, has been in contact "all night long" with U.S. Vice President JD Vance, special envoy Steve Witkoff, and Iranian Foreign Minister Abbas Aragchi.
Under the proposal, a cease-fire would take effect immediately, reopening the Strait of Hormuz, with 15–20 days to finalize 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.
Iran has formulated response
Iran has formulated its positions and demands in response to recent cease-fire proposals conveyed via intermediaries, a foreign ministry spokesperson said on Monday, adding that negotiations were "incompatible with ultimatums and threats to commit war crimes."
Spokesperson Esmaeil Baghaei said Tehran had a set of requirements based on its national interests that had already been conveyed via intermediary channels, adding that earlier U.S. demands such as the 15-point plan were rejected for being "excessive."
"Iran does not hesitate to clearly express what it considers its legitimate demands and doing so should not be interpreted as a sign of compromise, but rather as a reflection of its confidence in defending its positions," Baghaei said in a press conference.
"We have formulated our own responses" and will announce details in due time, he added in response to an Iranian journalist's question regarding ongoing efforts to bring about a cease-fire between Iran and the U.S.
Iranian officials previously told Reuters that Tehran was seeking a permanent cease-fire with guarantees that they will not be attacked again by the U.S. and Israel. They have said Iran has received messages from mediators, including Pakistan, Turkey, and Egypt.
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.
U.S. President Donald Trump has in recent days publicly pressed for a rapid end to the war, warning of consequences if a cease-fire is not reached within a short timeframe.
The war has heightened volatility in energy markets, with traders closely watching any developments that could affect flows through the strait.
