The US and Iran have reportedly finalized a draft agreement, with Pakistan serving as the unlikely diplomatic bridge between two nations that haven’t had direct relations in decades. The announcement is expected soon, marking what could be the most significant Middle Eastern diplomatic breakthrough in years.
The final draft was completed on May 21, 2026, capping weeks of indirect negotiations channeled through Islamabad. If confirmed by both governments, it would de-escalate a conflict that has kept global markets, including crypto, on edge since tensions flared earlier this year.
What’s in the deal
The proposed agreement includes an immediate ceasefire, mutual commitments against aggression, and a framework for follow-up negotiations. Those follow-up talks, covering sanctions relief and nuclear limitations, are set to begin within seven days of the draft’s formal announcement.
Access to the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil passes daily, has been a central sticking point. US envoys Steve Witkoff and Jared Kushner engaged directly with Iranian Foreign Minister Abbas Araghchi in Islamabad to work through that issue alongside the nuclear question.
