Published by Global Banking & Finance Review®
Posted on April 6, 2026
3 min readLast updated: April 6, 2026
Add as preferred source on GoogleA Pakistan-crafted “Islamabad Accord” proposes an immediate ceasefire and reopening of the Strait of Hormuz via a memorandum of understanding, followed by broader negotiations to finalize a comprehensive settlement.
April 6 (Reuters) - 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 U.S. 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 United States, 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 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 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 U.S. 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 U.S. 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.
U.S. 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.
(Reporting by Reuters staff; Editing by Raju Gopalakrishnan)
A two-tier ceasefire plan mediated by Pakistan, aiming for an immediate cessation of hostilities and reopening of the Strait of Hormuz, followed by negotiations for a permanent agreement.
Pakistan is acting as the main mediator, with involvement from Pakistan’s army chief and communication channels with both the US and Iran.
The Islamabad Accord involves a ceasefire, reopening of the Strait of Hormuz, a 15–20 day negotiation period, and regional guarantees.
Iran seeks a permanent ceasefire and guarantees against attacks from the US and Israel, along with sanctions relief and access to frozen assets.
Resolving hostilities and reopening the Strait of Hormuz would reduce volatility and risk to critical global oil supply routes.
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