A tentative ceasefire was declared on Thursday following protracted negotiations brokered by Pakistan aimed at halting escalating hostilities between the United States and Iran. The announcement came after a day marked by heightened tensions and threats, culminating in a 10.5-hour dialogue that produced a proposed two-week truce and the prospect of further talks in Islamabad this weekend to pursue a more durable agreement.

The ceasefire emerged around a framework put forward by Iran, consisting of ten key points that Iran introduced as a basis for discussion. While U.S. officials, including former President Donald Trump, described the plan as a "workable basis" for negotiation, many elements of the Iranian proposal had previously been rejected by Washington, complicating prospects for lasting resolution.

One of the most contentious demands involves Iran’s insistence on a non-aggression guarantee that would require the U.S. not only to halt current strikes but to renounce any future military action. This demand runs counter to recent U.S. policy, with Trump affirming his administration’s right to resume strikes if Iran rebuilds its nuclear capabilities.

Control of the Strait of Hormuz remains a pivotal issue. After threats from Trump to target Iranian infrastructure should the strait remain closed, the U.S. appeared to shift tone, suggesting responsibility for its reopening could rest with regional allies. Meanwhile, Iran has proposed charging tolls for passage through the strait—a notion reportedly welcomed by Trump, who expressed interest in a joint administration of the strategic waterway to both secure shipping lanes and exclude hostile actors.

The question of uranium enrichment continues to divide the parties. Although initially absent in the English version of Iran’s plan, the right to enrich uranium was included in the Farsi text and the official diplomatic release. Before the conflict, this issue was a major flashpoint. Trump indicated that Iran would cooperate with the U.S. on transferring uranium, a stance seemingly contradicted by Defense Secretary Pete Hegseth, who warned of using special operations forces to seize nuclear material if necessary.

Sanctions relief remains another critical component. Iran seeks the lifting of primary U.S. sanctions directly imposed on the country, as well as secondary sanctions that penalize third countries doing business with Iran’s banking system and economy. However, the U.S. lacks unilateral authority to lift multilateral United Nations Security Council sanctions or to end resolutions from the International Atomic Energy Agency (IAEA), the nuclear watchdog whose inspections were suspended following U.S. strikes last year. The IAEA’s leadership has emphasized the irreplaceable role of continued inspections in monitoring nuclear activities.

Compensation for war-related damages is also on the table, with Iran demanding billions of dollars, a point the U.S. has dismissed. Frozen Iranian assets, estimated between $100 billion and $120 billion globally, including roughly $2 billion in U.S. holdings, remain a complex matter. Past administrations have negotiated partial repayments tied to unrelated settlements.

Finally, the scope of troop withdrawals requested by Iran remains ambiguous, whether limited to direct combat forces or encompassing the broader U.S. military footprint in the Middle East, which currently involves approximately 40,000 personnel spread across 19 bases.

Despite the ceasefire and upcoming talks, significant obstacles persist. Particularly, Israel’s intensified campaign against Hezbollah in Lebanon continues unabated, underscoring the wider regional instability. As the scheduled discussions approach, analysts caution that while the truce offers a brief respite, fundamental disagreements on sovereignty, security guarantees, and regional influence will challenge efforts toward permanent peace.