The United States and Iran are moving closer to an agreement that would extend their fragile ceasefire by 60 days and gradually reopen the Strait of Hormuz, according to American officials familiar with the negotiations.
The proposed arrangement is still awaiting approval from Donald Trump, who is reportedly reviewing the draft framework before making a final decision.
The latest diplomatic progress comes after renewed military exchanges between US and Iranian forces overnight, underscoring the fragile nature of the truce first brokered in April. The conflicting signals surrounding negotiations have also contributed to volatility in global energy markets.
A US official said negotiators from both countries had finalized a memorandum of understanding, although Trump had not yet signed off on the agreement and was expected to take several days to consider its terms.
Iranian authorities did not formally confirm Washington’s account of the talks. However, Iran’s Fars news agency, which is closely aligned with the Islamic Revolutionary Guard Corps, warned that Trump could publicly announce an agreement even while Tehran still considered some issues unresolved.
US Treasury Secretary Scott Bessent said negotiations had continued intensively but stressed that Washington maintained several non-negotiable conditions.
According to Bessent, Iran must surrender its stockpile of highly enriched uranium, abandon any pursuit of nuclear weapons, and guarantee free navigation through the Strait of Hormuz.
Vice President JD Vance later acknowledged that the two sides were “not there yet” but said an agreement appeared increasingly close.
Under the proposed framework, Iran would gradually reopen the Strait of Hormuz and remove naval mines from the strategic waterway. Tehran would also temporarily suspend any shipping fees during the 60-day ceasefire extension, according to people briefed on the negotiations.
The agreement would also launch broader talks over Iran’s nuclear program, including discussions on diluting or transferring its enriched uranium stockpile. Iran would additionally commit not to develop nuclear weapons.
In exchange, Washington would gradually ease sanctions and potentially release Iranian overseas assets, depending on progress toward a longer-term settlement. The United States would also scale back naval restrictions around Iranian ports.
Despite the emerging framework, senior US officials have publicly disputed several reported details in recent days. Trump previously insisted sanctions relief and access to frozen Iranian assets were not currently under consideration.
The diplomatic push has intensified with mediation efforts from Qatar and Pakistan, amid fears that renewed US military action could trigger a broader regional conflict.
Iran’s effective closure of the Strait of Hormuz since the outbreak of fighting between the US, Israel, and Iran earlier this year has severely disrupted global energy supplies. Roughly one-fifth of the world’s oil shipments normally pass through the narrow maritime corridor.
Oil prices eased slightly on optimism surrounding the talks. Brent crude settled lower at around US$93.71 per barrel, near its weakest level in six weeks.
Trump has repeatedly demanded that the strait reopen immediately, while Iran continues to insist on maintaining administrative control over the strategic passage, including the ability to regulate maritime traffic.
The negotiations also intersect with wider regional diplomacy. Trump has reportedly linked any final agreement to broader normalization efforts between Israel and several Arab states, including Saudi Arabia and Qatar, both of which have participated in mediation efforts alongside Pakistan.
