U.S. and Iran Near Memorandum to Extend Ceasefire

The United States and Iran have signaled they are approaching an agreement that would turn the current ceasefire into a longer-term settlement through a memorandum of understanding. Both sides have described the memo as a roadmap for resolving outstanding issues, though its contents remain unclear. U.S. midterm elections later this year and Iran's strained economy.

President Trump wrote on social media Saturday that the Strait of Hormuz would reopen under the memorandum. Multiple Iranian media outlets reported Sunday that the strait would remain under Iranian supervision, with shipping volumes returning to pre-war levels over 30 days.

U.S. blockade of its ports be lifted at the same time. In a separate post Sunday, Trump stated the blockade would remain until a final agreement is reached, certified, and signed. Foreign Ministry spokesman Ismaeil Baghaei said Saturday that coordination with Iranian authorities would be required for safe transit and that the strait is an issue between Iran and coastal states.

A potential agreement would include Iran's commitment not to pursue a nuclear weapon and to enter later talks on its stockpile of highly enriched uranium. Iranian officials have said nuclear issues will not be discussed until after a memorandum ending the war is signed.

Iran is also seeking the immediate unfreezing of billions of dollars in overseas assets. Tasnim news agency reported Sunday that release of a portion of those assets, plus a mechanism for continued releases, is required for any agreement.

Baghaei said Saturday that lifting sanctions would not be discussed in the current timeframe, though Iran estimates removal of oil-sale sanctions alone could generate nearly $10 billion in revenue over 60 days. Details on sanctions would be negotiated after the memorandum is finalized.