U.S., Iran agree to 60-day truce extension pending Trump approval
(Bloomberg) — The United States and Iran have reached a tentative agreement to extend their ceasefire by 60 days and continue negotiations over Tehran’s nuclear program, raising hopes that the three-month conflict could be moving toward a resolution.
The proposed agreement, first reported by Axios and confirmed by a person familiar with the negotiations, still requires approval from President Donald Trump.
Treasury Secretary Scott Bessent said Thursday that negotiations remain ongoing and reiterated that any final agreement must address the administration’s key objectives, including reopening the Strait of Hormuz, securing the transfer of Iran’s highly enriched uranium stockpile and ending Tehran’s nuclear program.
“The teams have been going back and forth,” Bessent said during a White House briefing.
The U.S. and Iran have maintained a fragile truce since early April, though sporadic military incidents have continued. According to Axios, Trump requested additional time to review the proposed agreement.
Iranian officials also signaled progress. Fada-Hossein Maleki, a member of Iran’s parliamentary commission for national security, said negotiations have shown “significant progress,” according to Iranian media reports.
The prospect of a deal weighed on oil prices, with crude retreating toward $95/bbl as traders assessed the possibility of improved access through the Strait of Hormuz.
According to the reported framework, shipping through Hormuz would be restored without restrictions, while Iran would remove mines from the waterway within 30 days. The strait normally handles roughly one-fifth of global oil and LNG trade and has remained severely disrupted since fighting erupted in late February.
Bessent also dismissed reports that Oman could impose transit fees on vessels using the strait, saying Omani officials had assured Washington there were no plans to introduce tolls.
The diplomatic progress came despite renewed tensions overnight. U.S. officials said American forces shot down four Iranian drones targeting a commercial vessel and struck a launch site near Hormuz in what they described as defensive actions. Iranian state media reported that Tehran subsequently targeted the U.S. base involved in the operation.
The conflict has significantly disrupted global energy markets, constraining oil and LNG shipments from the Persian Gulf and contributing to higher energy prices worldwide.
Washington also increased economic pressure on Tehran this week, sanctioning Iran’s Persian Gulf Strait Authority. The Treasury Department accused the agency of attempting to profit from shipping disruptions by imposing fees and restrictions on vessels seeking passage through the waterway.
Iran has argued that new transit rules are necessary for security and environmental protection. The Islamic Revolutionary Guard Corps said 26 commercial vessels and oil tankers transited the strait during the past 24 hours after obtaining approval from Iranian authorities.
Several key issues remain unresolved. In addition to the future of Iran’s nuclear program, negotiators continue to debate the release of Iranian financial assets frozen under U.S. sanctions. Iranian media reported Thursday that Tehran is seeking the release of all blocked assets, estimated at approximately $24 billion.
The outcome of those discussions could determine whether the tentative agreement evolves into a broader settlement capable of restoring normal energy flows through one of the world's most important oil shipping corridors.
Map source: Global Energy Infrastructure
