The White House believes it is close to a deal with Iran based on a one-page memorandum of understanding to end the war and establish a framework for further negotiations on Tehran’s nuclear program, according to two U.S. officials and two other sources with knowledge of the matter cited by an Axios report.

The United States expects answers on a number of important issues within the next 48 hours. Nothing has been agreed yet, but the sources say it is the closest the sides have come since the war began.

Among other things, the deal calls for Iran to commit under a memorandum to uranium enrichment, the US to agree to lift sanctions and release billions in frozen Iranian assets, and the lifting of mutual restrictions on navigation in the Strait of Hormuz.

Among other things, the deal calls for Iran to commit under a memorandum to uranium enrichment, the US to agree to the lifting of sanctions and the release of billions in frozen Iranian assets, and the lifting of mutual restrictions on navigation in the Strait of Hormuz.

Many of the terms contained in the memorandum of understanding are subject to reaching a final agreement, which leaves open the possibility of a resumption of hostilities or an extension of the current deadlock as hostilities have been suspended but nothing has been resolved, according to Axios.

Stock markets strengthen, oil prices retreat

European stocks are rising today with oil prices retreating and optimism among investors strengthening after US President Donald Trump said there was “great progress” towards a comprehensive peace deal with Iran.

At 12:00 GMT, the French CAC 40 index jumped 2.57 percent and Germany’s Dax was up 2.46 percent. London’s stock market was up 2.28% and Milan’s was up 2%.

Around 11:55 GMT, the price of a barrel of North Sea Brent crude for July delivery was down 6.22% at $103.04. A barrel of US WTI crude, delivered in June, fell 6.44% to $95.68.

Trump said he would suspend for a short period of time “Project Freedom,” as he christened a military operation to escort merchant ships seeking to leave the Gulf by crossing the Strait of Hormuz.

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China calls for opening the Strait of Hormuz

Chinese Foreign Minister Wang Yi today called for a “complete” end to hostilities in the Middle East and urged the US and Iran to reopen the Strait of Hormuz “as soon as possible” during talks in Beijing with his Iranian counterpart Abbas Araghchi.

“China believes that a complete cessation of hostilities is necessary, that a resumption of the conflict will not be acceptable, and that perseverance in negotiations is particularly important,” Wang Yi said, according to a statement issued by his office.

The Chinese minister also assessed that “the current regional situation is at a critical point of transition from war to peace.”

Wang also called on “the parties concerned” to immediately restore “normal and safe passage” through the Strait of Hormuz.

As for Iran’s nuclear program, the Chinese minister noted that “China appreciates Iran’s commitment not to develop nuclear weapons, while recognizing its legitimate right to the peaceful use of nuclear energy.”

For his part, Araghchi stressed that “just as Iran has shown strength in defending itself and remains fully prepared to face any attack, it is also serious and firm in the field of diplomacy.”

“We will do everything we can to protect our legitimate rights and interests in negotiations” with the US to end the war in the Middle East, Araghchi stressed after his meeting with Wang. “We only accept a fair and comprehensive agreement,” he added.

However, Araghchi made no mention of US President Donald Trump’s statements about suspending Plan Freedom – the US plan to escort merchant ships in the Strait of Hormuz – as he spoke of “great progress” in negotiations to end the war.

This visit to Beijing by Araghchi is his first trip to China since the start of US-Israeli strikes on Iran on February 28 and the ensuing war, which has caused a powerful energy shock worldwide.

Earlier this week, US Treasury Secretary Scott Bessent had called on China to step up diplomatic efforts to persuade Iran to open the Strait of Hormuz, critical to global shipping, through which a fifth of the world’s hydrocarbon production normally passes.

Bessent had added that during Trump’s visit to China on May 14 and 15, during which he will meet his Chinese counterpart Xi Jinping, the two leaders will exchange views on Iran.