US and Iran Agree to Mutual De-escalation; Tehran Reopens Strait of Hormuz

The United States and Iran have reached a tentative memorandum of understanding to extend an existing ceasefire, reopen the Strait of Hormuz, and begin 60 days of further negotiations on sanctions and Iran's nuclear program. U.S. naval blockade of Iranian ports and allow shipping through the strait to return to pre-war levels over 30 days.

Four sources familiar with the matter told Reuters on Thursday that the memorandum had been agreed in principle. Iranian state media reported the same day that the text had not yet been finalized or confirmed. U.S. Officials said the 60-day clock for deeper negotiations would start only after the memorandum is signed.

Reopening the strait is listed as the first step in the draft memorandum. The United States has maintained a naval blockade that has redirected 115 commercial vessels away from Iranian ports as of May 29.

Iranian officials have said any reopening must include continued Iranian management of traffic through the waterway. Shipping industry sources have indicated they will wait for a sustained period of calm before resuming transits. The talks would address Iran's nuclear program, the status of its highly enriched uranium stockpile, and the timing of any sanctions relief.

The memorandum itself is not expected to detail limits on uranium enrichment. Negotiators would address Iran's stockpile of more than 440 kilograms of highly enriched uranium during the subsequent 60-day period. U.S. Officials have stated that sanctions relief and the release of frozen Iranian assets would be tied to the reopening of the strait and progress on the nuclear file.

Iranian state media reported that removal of sanctions on oil sales alone could generate nearly $10 billion in revenue over 60 days. It remains unclear whether the memorandum will address the conflict between Israel and Hezbollah in Lebanon.

Iranian officials have said the agreement should cover an end to fighting on all fronts, including Lebanon. Israeli forces have continued operations in southern Lebanon in recent days while Hezbollah has fired drones and rockets toward Israel. The ceasefire reached in mid-April remains in place in name only.