The U.S. is reportedly close to finalizing a memorandum of understanding (MOU) with Iran that would end the ongoing war and set the stage for serious nuclear negotiations. According to Axios, the Trump administration is putting the finishing touches on a 14-point, one-page MOU, with President Donald Trump's representatives Steve Witkoff and Jared Kushner leading the talks.

The MOU is expected to announce an end to the war and kick off a 30-day period for detailed discussions on opening the Strait of Hormuz, limiting Iran's nuclear program, and lifting U.S. sanctions. The talks could happen in Islamabad or Geneva. Over those 30 days, Iran's shipping restrictions and the U.S. naval blockade would be gradually lifted. But if negotiations fail, U.S. forces could reinstate the blockade or restart military action.

One key detail still being hammered out: how long Iran's uranium enrichment moratorium will last. Sources say it could be at least 12 years. The MOU's terms are contingent on a final agreement, meaning there's still room for war to resume or for a prolonged stalemate.

The White House didn't immediately respond to requests for comment.

Oil Dips as Trump Pauses 'Project Freedom'

This news comes right after Trump temporarily halted 'Project Freedom,' a military-backed operation to escort commercial ships through the Strait of Hormuz. Axios reports that the President made the call because peace talks were making progress.

But Secretary of State Marco Rubio cautioned at a White House briefing on Tuesday that a final agreement won't come quickly. He stressed that a complex deal requires clear terms on what each side is willing to negotiate and concede upfront to make talks worthwhile.

As of writing, Brent crude oil was trading 7.13% lower at $102.04 per barrel, while S&P 500 futures edged 51 points higher to 7,338.25.

The timing of the MOU negotiations also lines up with a strategic meeting between China and Iran, just days before Trump visits Beijing. Experts see this as Iran's way of showing the U.S. that it's not isolated and has options, strengthening its bargaining position in the standoff with Washington.