The United States and Iran have reached a tentative agreement to extend their ceasefire for another 60 days. This deal also aims to restore unrestricted shipping through the vital Strait of Hormuz. Sources familiar with the negotiations told Reuters the plan awaits final approval from President Donald Trump. Iranian state media has downplayed the reports, saying the text is not yet finalized.
Recent clashes have highlighted the fragility of the situation. Tensions remain high after fresh tit-for-tat air strikes between the two sides. US forces shot down Iranian drones and struck a ground control station in Bandar Abbas. Iran responded by targeting a US base, while Kuwait intercepted a ballistic missile. These incidents occurred despite a ceasefire in place since early April. Vice President JD Vance expressed cautious optimism, saying, “We’re not there yet, but we’re very close,” during remarks to reporters.
The conflict, which began on February 28, has already caused thousands of deaths and significantly disrupted global energy supplies. Oil markets reacted quickly to reports of a possible agreement, with prices falling sharply. The Strait of Hormuz handles about one-fifth of the world’s oil and LNG supply, making stability in the region critical for global markets. If approved, the agreement would lift US restrictions on Iranian ports and ease some oil sanctions.
Negotiators hope to tackle deeper issues next, including Iran’s nuclear program. Pakistan is mediating the talks, with its foreign minister set to meet US Secretary of State Marco Rubio. Meanwhile, the US warned Oman against any joint toll efforts with Iran in the strait, after Trump had previously threatened military action against Oman over such proposals.
The developments come during the Muslim holiday of Eid al-Adha, with regional players remaining wary of further escalation. Analysts say this could become the biggest step toward peace since the fighting started. However, both sides continue issuing strong public statements. Iran demands full sanctions relief and a US withdrawal from the region, while Washington insists on dismantling Iran’s nuclear ambitions. The coming days will be critical as Trump reviews the proposal.