Inside Islamabad accord: US, Iran receive Pakistan's ultimate ceasefire plan; What's at stake?

A framework to end the US-Iran conflict may be closer than it appears. Both Washington and Tehran have received a ceasefire proposal that could take effect as early as Monday and reopen the Strait of Hormuz, according to a source familiar with the proposals. The plan, put together by Pakistan overnight, follows a two-tier structure: an immediate halt to hostilities, followed by negotiations toward a comprehensive settlement.

"All elements need to be agreed today," the source told Reuters, adding that the initial understanding would be structured as a memorandum of understanding, finalised electronically through Pakistan, the sole communication channel currently operative between the two sides.

Pakistan's army chief, Field Marshal Asim Munir, has been at the centre of the diplomatic push, remaining in contact through the night with US Vice President JD Vance, special envoy Steve Witkoff, and Iranian Foreign Minister Abbas Araqchi, the source said.

Key elements of the proposed 'Islamabad Accord'

• An immediate ceasefire to halt all hostilities between the US, Israel and Iran
• Reopening of the Strait of Hormuz to restore global oil and gas flows
• A 15–20 day window to negotiate and finalise a broader, comprehensive settlement
• Final in-person talks to be held in Islamabad, with a regional framework for the strait
• A potential 45-day ceasefire as the first phase, as reported by Axios, citing US, Israeli and regional sources
• Iranian commitments to abandon the pursuit of nuclear weapons
• In exchange, Iran will receive sanctions relief and the release of frozen assets
• Pakistan to serve as the sole communication channel, with the initial MOU finalised electronically

However, significant uncertainty remains. Two Pakistani sources indicated that Iran has yet to formally commit to the proposals despite intensified civilian and military outreach from multiple parties.

"Iran has not responded yet," one source said, noting that proposals backed by Pakistan, China, and the United States for a temporary ceasefire have so far drawn no firm commitment from Tehran. Iranian officials had previously told Reuters that Tehran was seeking a permanent ceasefire with guarantees against future attacks by the US and Israel, and confirmed receiving messages from mediators, including Pakistan, Turkey, and Egypt.

There was no immediate response from US, Iranian, or Chinese officials. Pakistan's foreign office spokesperson Tahir Andrabi declined to comment.

The diplomatic push comes as hostilities continue to rattle global energy markets, with traders watching developments at the Strait of Hormuz with growing anxiety. US President Donald Trump has publicly called for a swift end to the conflict in recent days, warning of consequences if a ceasefire is not reached within a short timeframe.

(With inputs from Reuters)