US, Iran weigh potential deal as Trump seeks way out of war

The U.S. and Iran were circling around a fresh proposal to end the war on Wednesday, as President Donald Trump searches for an exit from a conflict that has elevated energy prices and damaged his political standing.

Washington has presented a one-page memorandum of understanding that would gradually reopen the Strait of Hormuz and lift the American blockade on Iranian ports, according to a person familiar with the measure, who asked not to be identified discussing sensitive information. Detailed negotiations over Iran's nuclear program would come later in the process, the person said, adding that nothing has yet been agreed upon.

The initial offer capped off a chaotic 48 hours that illustrates the bind Trump confronts as he tries to defuse an energy crisis he helped create by attacking Iran alongside Israel in late February. The move came after Trump suspended a short-lived U.S. mission to offer safe passage for commercial ships through the strait, a vital waterway for oil and gas.

Adding to his urgency is a summit scheduled next week with Chinese President Xi Jinping, which already was postponed in the early days of the conflict because of the Middle East backdrop.

Polls show Americans' distaste for the conflict is growing - six months from midterm elections in which prices will be a central focus. Gasoline prices breached $4.50 a gallon for the first time since July 2022, according to the American Automobile Association. That trajectory has challenged Trump's prediction that costs at the pump will plummet when the war ends.

Japanese equities rallied on their return from a break, helping lift Asian shares to another record as optimism grew over a deal to end the conflict. Oil steadied after plunging nearly 8% in the previous session, with Brent trading above $102 a barrel.

Trump on numerous occasions throughout the conflict has indicated that a deal is near, though none has materialized. He acknowledged to the New York Post that it might be "too soon" to think about face-to-face talks to lock up such an agreement.

Iran is expected to send a response via Pakistan, acting as a mediator, in the next two days, the person familiar said. State media have signaled that parts of the U.S. proposal remain unrealistic to Iran's leadership.

The U.S. will end its military campaign and lift its blockade of Hormuz "assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption," Trump posted on social media, without giving details of the proposal. "If they don't agree, the bombing starts."

In Israel, the prospective deal caused concern, with Prime Minister Benjamin Netanyahu's government pledging to keep pressure on Iran until it's totally defeated and its nuclear, missile and proxy militia programs dismantled.

Netanyahu is holding talks with American officials to better understand the situation, CNN reported, citing an Israeli source it didn't identify.

Here's more related to the war:

-Trump reiterated in a Georgia tele-rally that it will work out quickly on Iran.

-Trump said to reporters at the White House that he didn't have a deadline to reach an agreement with Iran, but predicted "it'll happen" and declared "we won" the war.

-The new peace plan includes provisions for the removal of sanctions on Iran and a moratorium on the country's uranium enrichment program, according to the person familiar with the matter. All conditions could be reversed if a wider nuclear deal can't be reached, they said. Axios first reported on the proposal earlier Wednesday.

-The Israeli army carried out an attack in the southern suburbs of Beirut on Wednesday, the first in the vicinity of the Lebanese capital since the U.S.-brokered ceasefire came into effect last month. The assault was intended to kill a Hezbollah commander. There has been no official confirmation of his death.

-At a meeting in Beijing, China's Foreign Minister Wang Yi urged Iranian counterpart Abbas Araghchi to keep negotiating, saying "a resumption of hostilities is inadvisable." Araghchi said Iran appreciated a four-point proposal China offered on resolving the war.

-Trump and Xi are to meet in Beijing on May 14-15, with the U.S. leader acknowledging Tuesday that the conflict would be on the agenda. Trump told PBS News that the U.S. would offer sanctions relief to Iran if the deal is secured, which could render unnecessary any potential U.S. penalties on Chinese banks buying Iranian oil.

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(With assistance from John Bowker, John Harney, Jon Herskovitz, Anand Krishnamoorthy and Derek Wallbank.)

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This story was originally published May 6, 2026 at 12:27 PM.