Pakistan's Chief of Army, Asim Munir, is reportedly carrying a proposal to Iranian leaders aimed at reducing tensions between the US and Iran, according to Al Arabiya. The proposal is said to include an offer to halt the economic siege on Iran and gradually lift sanctions under the framework of the Islamabad Memorandum of Understanding (MoU), which Pakistan has been promoting as part of its mediation efforts between the two sides.

The development comes as Munir concluded a high-level visit to Tehran alongside Pakistan's Interior Minister Mohsin Naqvi. According to Iran's ISNA news agency, Pakistani officials described the visit as fruitful, and the outcome of the discussions is expected to become clearer soon. Pakistani and Iranian officials have continued consultations on mechanisms to reduce regional tensions and revive the diplomatic process.

The visit follows reports that US President Trump spoke directly with Munir ahead of the trip, encouraging Pakistan to use its influence to help bring Iran back to negotiations. Pakistan has increasingly positioned itself as a mediator between Iran and the US amid sanctions pressure, regional escalation concerns, and attention to the Strait of Hormuz, a key route for global energy shipments that is often watched closely when tensions rise.

Markets reacted positively to the news on expectations of potential de-escalation and eventually a deal. Oil prices fell after the report, while equities moved higher. While similar positive headlines have surfaced before, the fact that Trump reportedly spoke with Munir before his trip is strengthening market hopes for a better outcome.