The Pakistani source said a report earlier by the US media outlet Axios on the proposed memorandum was accurate. The Axios report had cited two US officials and two other sources familiar with the discussions.

"We will close this very soon. We are getting close," the Pakistani source said. Last month Pakistan hosted the war's only peace talks so far, and it has continued in that role of mediator, ferrying proposals between the sides.

Reports of the possible agreement to end the war caused global oil prices to plunge, with benchmark Brent crude futures falling more than 8 percent to around $100 a barrel. Global share prices also leapt and bond yields fell on optimism of an end to a war that has disrupted energy supplies.

The White House, the State Department and Iranian officials contacted by Reuters did not immediately respond to requests for comment. US news channel CNBC quoted a spokesperson from the Iranian foreign ministry as saying Tehran was evaluating a 14-point US proposal.

Axios reported that the White House believed it was closing in on a one-page memorandum to end the war with Iran. The report came hours after US President Donald Trump paused a three-day-old naval mission to reopen the Strait of Hormuz.

The Axios report said the US expected Iranian responses on several key points in the next 48 hours.

Among other provisions, Axios said, the deal would involve Iran committing to a moratorium on nuclear enrichment, the US agreeing to lift its sanctions and release billions of dollars in frozen Iranian funds, and both sides lifting restrictions around transit through the Strait of Hormuz.

Pakistan's Prime Minister Shehbaz Sharif -- a key mediator in the war between Iran and the United States and Israel -- said on Wednesday he was "hopeful" the current momentum on negotiations would lead to peace in the Middle East.

Sharif also praised President Donald Trump for pausing the escort of commercial ships through the Strait of Hormuz barely a day after the US began doing so.

"I am grateful to President Donald Trump for his courageous leadership and timely announcement regarding the pause in Project Freedom in the Strait of Hormuz," he said in a post on X.

"President Trump's gracious response ... will go a long way towards advancing regional peace, stability and reconciliation during this sensitive period.

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