The United States and Iran have reached a tentative agreement to extend their ceasefire by 60 days and begin further talks on Tehran’s nuclear programme.
This is according to reports citing officials familiar with the negotiations, although the agreement still requires approval from US President Donald Trump.
The development has raised hopes that the three-month conflict could be moving toward a diplomatic resolution. However, both sides have previously signaled progress in negotiations only for talks to stall over unresolved issues, including the Strait of Hormuz, sanctions relief, and Iran’s nuclear capabilities.
Vice President JD Vance said on Thursday that the US and Iran were still working through language in the proposed agreement, including issues relating to Tehran’s nuclear programme. He said Iran appeared to be negotiating in good faith and that progress was being made.
Iran’s semi-official Tasnim news agency said the text of the possible memorandum of understanding between the US and Iran had not been finalised, citing an unnamed source.
US Treasury Secretary Scott Bessent declined to confirm whether an interim deal had been reached, saying negotiations were still ongoing.
Bessent also reiterated that Trump’s key conditions remain the reopening of the Strait of Hormuz, Iran surrendering highly enriched uranium, and ending its nuclear weapons-related programme.
The latest diplomatic progress follows months of escalating tensions after the United States and Israel launched strikes on Iran in February, triggering retaliatory moves and a wider crisis around the Strait of Hormuz.
The conflict intensified after Iran used its position around the Strait of Hormuz to disrupt shipping through the vital energy route.
The waterway is important to global energy markets, with about a fifth of global oil and gas exports passing through the area.
The US and Iran have had a fragile truce in place since April, although the ceasefire has been disrupted by isolated military strikes.
Trump has repeatedly insisted that any agreement with Tehran must prevent Iran from obtaining a nuclear weapon.
The proposed framework would extend the ceasefire for 60 days, reopen the Strait of Hormuz, and create room for further talks on Iran’s nuclear programme.
Fada-Hossein Maleki, an Iranian lawmaker and member of the country’s parliamentary commission for national security, said negotiations between the US and Iran had shown significant progress, according to Iran’s semi-official ISNA news agency.
The US still has to decide whether to accept some Iranian conditions, although the details were not disclosed.
The proposed memorandum of understanding is expected to guarantee unrestricted shipping through the Strait of Hormuz.
Reports say Iran would be required to clear mines from the strait, while the US would lift its blockade on Iranian ports.
Bessent also said Oman had assured Washington that it had no plans to impose tolls on shipments through the Strait of Hormuz.
The talks have also affected global markets, with Brent crude easing as investors reacted to hopes that tensions around the Strait of Hormuz could ease. Reuters reported that global stocks rose to record highs on Friday, while Brent crude traded around $92.69 per barrel.
Last week, Trump said the United States and Iran were close to finalising an agreement aimed at easing tensions between both countries.
The proposed deal includes the reopening of the Strait of Hormuz, a key global oil transit route.
The US and Iran have exchanged proposals and counterproposals through diplomatic channels, including discussions involving Pakistan.
The negotiations have focused on the waterway, Tehran’s nuclear programme, sanctions relief, and Iran’s highly enriched uranium stockpile.
Iran has maintained that nuclear issues should be negotiated after a framework agreement is reached.
The tentative agreement remains subject to Trump’s approval, meaning the outcome of the talks is still uncertain despite the latest signs of progress.