The United States and Iran are moving toward a deal that could end their war and reopen the blocked Strait of Hormuz in coming hours, Al Arabiya reported Thursday, citing source.
"Understandings have been reached regarding easing the US blockade in exchange for a gradual reopening of the Strait of Hormuz."
As per the report, sources said, "The coming hours will witness a breakthrough regarding the status of ships stranded in the Strait of Hormuz."
But Iran's own lawmakers are already pushing back, calling the American proposal more fantasy than reality.
???? BREAKING: The coming hours will witness a breakthrough regarding the status of ships stranded in the Strait of Hormuz, Al Arabiya reports citing sources. pic.twitter.com/8FkzJJd6no
— Al Arabiya English (@AlArabiya_Eng) May 7, 2026
At the centre of the diplomacy is a one-page, 14-point memorandum of understanding being negotiated by US President Donald Trump's envoy Steve Witkoff and son-in-law Jared Kushner, Al Arabia reported.
In its current form, the MOU would declare an end to the war and start a 30-day period of negotiations on a detailed agreement to open the strait, limit Iran's nuclear programme and lift US sanctions. The full agreement would also include the US releasing frozen Iranian funds and both sides lifting their competing blockades on the strait.
While sources said the memorandum would not initially require concessions from either side, key past US demands — curbs on Iran's missile programme and an end to its support for proxy militias — were not mentioned.
Meanwhile, Trump sounded optimistic on Wednesday. "They want to make a deal. We've had very good talks over the last 24 hours, and it's very possible that we'll make a deal," he told reporters in the Oval Office, adding later that "it'll be over quickly."
He also posted online: "Assuming Iran agrees to give what has been agreed to... the Hormuz Strait will be OPEN TO ALL, including Iran. If they don't agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before."
Iran's response was divided. An Iranian foreign ministry spokesperson cited by ISNA said, "Tehran would convey its response through Pakistan. But Iranian lawmaker Ebrahim Rezaei, spokesperson for parliament's powerful foreign policy and national security committee, dismissed the proposal as "more of an American wish-list than a reality."
Iran's parliament speaker Mohammad Baqer Ghalibaf went further, mocking reports of a near-deal by writing on social media that "Operation Trust Me Bro failed," calling the reports American spin following its failure to reopen the Strait of Hormuz.
The strait has been effectively closed since February 28, 2026, when the US and Israel launched strikes on Iran. Before the war, roughly 25% of the world's seaborne oil and 20% of global LNG passed through it. As per reports about 1,600 ships remain stranded in the waterway.
ALSO READ: Iran Rejects Allegations Of Involvement In Damage To Korean Vessel HMM In Hormuz
Trump administration officials cautioned that talks had previously fallen apart at the last minute, and Trump himself acknowledged on Wednesday: "I felt that way before with them, so we'll see what happens."
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