Rabat: Mediators are seeking to revive a memorandum of understanding between Iran and the US and reopen the Strait of Hormuz, according to Israeli media on Sunday.

According to Anadolu Agency, sources familiar with the matter told Channel 12 that a proposed deal includes a return to the ceasefire between Washington and Tehran and keeping the Strait of Hormuz open for 60 days without fees. The US and Iran had initially signed a ceasefire in April followed by a Pakistan-mediated memorandum of understanding in June, aimed at ending their military conflict and establishing a lasting peace agreement.

The deal, however, collapsed last month when the US launched 13 consecutive days of bombardment on Iran over attacks on vessels in the Strait of Hormuz, which Washington attributed to Tehran. In retaliation, Iran launched missile and drone attacks on Gulf nations hosting US assets. The US has demanded that Iran cease attacks on vessels and ensure freedom of navigation through the strait. Tehran, on the other hand, insists that ship traffic through waters adjacent to its coastline be governed by a mechanism under its supervision.

US President Donald Trump announced on Saturday that he canceled a planned military strike against Iran after Tehran and 'other Middle Eastern countries' requested time to finalize the framework of a peace deal, mentioning that Israel has joined the commitment. He claimed on his social media platform, Truth Social, that the sides have agreed to the 'perimeters' of a potential deal, which would include the "immediate, complete, and total" reopening of the Strait of Hormuz and an end to Iran's nuclear threat.

However, Iranian military officials dismissed Trump's claim as a 'lie.' A source close to Iran's negotiating team also denied reports that an agreement had been reached to reopen the Strait of Hormuz, stating that 'no agreement has been reached on reopening the Strait of Hormuz,' as reported by the semi-official Fars News Agency.