US President Donald Trump is prepared to ease sanctions on Iran in return for a nuclear agreement, according to reports from New York talks. The development came as diplomats pinned hopes on a proposal to end the war, which has now run for seven months.

The offer was described as a diplomatic position and proposal rather than an indication that an agreement has been reached. Major differences remain, particularly over sanctions and Iran’s nuclear programme, and both sides continue to talk past each other on key terms.

Iran has said it wants a negotiated solution to its conflict with the United States and Israel after Trump rejected an Iranian offer about the Strait of Hormuz. Iranian officials say negotiations are still possible with mediators, and further talks are expected this week.

The Strait of Hormuz is one of the world’s most important oil shipping routes, so instability there can affect global energy prices. Mediators are expected to present an amended version of Iran’s seven-day proposal in the coming days.