The United States and Iran have reportedly reached a draft memorandum of understanding (MOU) to extend their fragile ceasefire for another 60 days, but the proposal still requires final approval from U.S. President Donald Trump, according to officials familiar with the negotiations.
The agreement, first reported by Axios and later confirmed by multiple media outlets, is seen as a major diplomatic breakthrough after months of escalating military tensions, naval confrontations and economic disruption across the Middle East.
According to sources, the proposed MOU would extend the existing ceasefire while opening the door for renewed negotiations over Iran’s nuclear program, sanctions relief and maritime security in the Strait of Hormuz.
Key elements of the proposed agreement
Officials familiar with the talks said the draft agreement includes several major commitments from both sides.
Iran would reportedly:
- Reopen and secure the Strait of Hormuz
- Remove naval mines within 30 days
- Allow unrestricted commercial shipping
- Enter negotiations over uranium enrichment and nuclear activities
In return, the United States would reportedly:
- Ease some sanctions restrictions
- Discuss the release of frozen Iranian funds
- Reduce pressure on Iranian oil exports
- Suspend some blockade-related measures during negotiations
Sources said the agreement is structured around a “relief for performance” approach, meaning sanctions relief would depend on Iran meeting specific commitments during the 60-day period.
Trump yet to give final approval
Despite progress in negotiations, the deal has not yet been formally approved by President Trump.
Reuters and Axios reported that U.S. officials believe the framework could stabilize the region temporarily, but Trump remains cautious and has not committed publicly to endorsing the agreement.
Trump previously said any agreement with Iran would need to be “meaningful” and warned that negotiations could still collapse if Tehran failed to meet U.S. demands.
The White House has not officially commented on whether the president is prepared to sign the MOU.
Tensions remain high despite diplomacy
The proposed extension comes amid continued military tensions in the Gulf region.
Recent reports indicated that U.S. forces carried out what officials described as “self-defense” strikes against Iranian-linked targets after drone and missile incidents involving American military assets in the region.
Officials also reported renewed confrontations in and around the Strait of Hormuz, one of the world’s most critical oil shipping routes.
The waterway handles a significant portion of global oil and liquefied natural gas exports, meaning any disruption immediately affects international energy markets.
Oil prices briefly fell after reports emerged that Washington and Tehran were nearing a ceasefire extension agreement, reflecting investor hopes that shipping disruptions could ease.
Nuclear negotiations at the center of talks
A central part of the proposed deal involves restarting negotiations over Iran’s nuclear activities.
According to sources familiar with the draft, Iran would commit to discussions regarding limits on uranium enrichment and the handling of highly enriched uranium stockpiles.
However, officials cautioned that many of the most difficult issues remain unresolved, including:
- Permanent sanctions relief
- Long-term nuclear verification mechanisms
- Regional militia activity
- U.S. military presence in the Gulf
Iranian officials have not publicly confirmed the full details of the agreement, though reports suggest Tehran has signaled willingness to continue negotiations if economic restrictions are eased.
Regional and global implications
The proposed agreement is being closely watched by regional powers, energy markets, and international diplomats.
Countries heavily dependent on Gulf energy exports, including China, India, Japan, and several European states, have pushed for stability in the Strait of Hormuz after months of shipping disruptions and rising insurance costs for commercial vessels.
Analysts say even a temporary ceasefire extension could reduce pressure on global energy markets and lower the risk of wider regional conflict.
Still, observers warn that the agreement remains fragile.
Previous ceasefire arrangements between the U.S. and Iran have faced repeated setbacks, including accusations of violations, proxy attacks, and disputes over sanctions enforcement.
Outlook
Negotiators are expected to continue discussions over the coming days as both sides seek formal approval for the proposed 60-day extension.
If finalized, the agreement could become the most significant diplomatic opening between Washington and Tehran since the recent conflict began earlier this year.
However, with unresolved disputes still hanging over the negotiations, the success of the deal may ultimately depend on whether both governments are willing to move beyond temporary ceasefires toward a broader long-term settlement.
________________________________________________________________________________________________________________
