U.S. and Iran Reach Tentative Ceasefire Deal to Reopen Strait of Hormuz

The United States and Iran have reached a memorandum of understanding that would extend an existing ceasefire, reopen transit through the Strait of Hormuz, and lift a U.S. blockade along with some sanctions on Iran, four sources familiar with the talks told Reuters.

The agreement has not been finalized and President Donald Trump has not yet approved it. Vice President JD Vance stated on Thursday that negotiators are close but still working on details.

Following a ceasefire reached in early April, the two sides have continued indirect talks over Iran’s nuclear program, Israel’s operations in Lebanon, and Iranian demands for sanctions relief. The new memorandum would give negotiators 60 days to reach a final accord.

Iranian officials have not issued a formal response. The semi-official Tasnim news agency reported that a source close to the negotiating team said the text has not been completed or confirmed.

Iran’s closure of the Strait of Hormuz, which carries about one-fifth of global oil and liquefied natural gas shipments, has raised oil prices. Reopening the waterway is listed as a U.S. priority, though clearing sea mines and freeing vessels could take additional time.

The last nuclear agreement between the two countries was reached in 2015 and ended in 2018. Any new deal would still require separate negotiations on Iran’s stockpile of highly enriched uranium and the sequencing of sanctions relief.