US-Iran deal takes shape as Qatar says draft agreement is 'circulating'

Draft language for a potential agreement between the US and Iran is being circulated among mediators as diplomatic efforts intensify to halt the conflict and reopen the strategically vital Strait of Hormuz.

Qatar’s Foreign Ministry spokesman Majed Al-Ansari told CNN that negotiations were entering what he described as “very progressive stages,” with Qatar, Pakistan and Oman working to exchange proposals between Washington and Tehran.

The development marks one of the clearest signs in recent days that mediators may be trying to build a short-term arrangement that could bring the United States and Iran back to direct negotiations.

Qatar has said that a ceasefire and reopening of the Strait of Hormuz would be essential to restarting formal US-Iran negotiations.

US Secretary of State Marco Rubio said late on Tuesday that talks had made progress.

"There has been progress in talks to reopen the Strait of Hormuz, but no final agreement has been reached yet. We are hopeful that an agreement will be finalised very shortly," Rubio was quoted as saying.

Rubio said reopening Hormuz emerged as the immediate issue, while a broader agreement aimed at preventing Iran from developing a nuclear weapon remains the longer-term objective.

President Donald Trump has also indicated that the Strait of Hormuz is at the centre of the current diplomatic push and suggested the waterway could reopen quickly if an understanding is reached.

Still, major differences remain. Tehran has previously insisted that its security and control over its nuclear program must be respected, while Washington has pushed for restrictions aimed at preventing Iran from acquiring a nuclear weapon.

The two sides have also disagreed over the future of US military forces in the region, sanctions and the terms governing maritime traffic through Hormuz.

No final agreement has been reached and there is no firm timetable for a deal.