US, Iran agree deal to extend ceasefire, reopen Hormuz

The United States and Iran on Thursday reached ​an agreement to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz.

However, the deal agreed is yet to receive final approval from United States President Donald Trump and the Iranian authorities.

Four sources familiar with the negotiations told Reuters that the proposed agreement would extend the current truce by another 60 days and guarantee unrestricted passage through the strategic waterway while both sides continue discussions on contentious issues, including Iran’s nuclear programme.

If endorsed by leaders in Washington and Tehran, the agreement would represent the most significant breakthrough since hostilities erupted on February 28, 2026.

The development follows renewed exchanges of attacks between the two countries despite the ceasefire that took effect in early April.

While sources said the deal was close to completion, Trump has not yet approved the arrangement. Iranian officials have also remained cautious.

Iran’s Tasnim news agency, quoting a source close to the negotiating team, reported that the text of the agreement had neither been finalised nor officially confirmed.

Oil prices slip amid US-Iran ceasefire deal

Speaking to reporters in Washington, U.S. Vice President JD Vance expressed optimism over the ongoing talks.

Vance said: “We’re not there yet, but we’re very close and we’re going to keep on working at it.

“I can’t guarantee that we’re going to get there, but right now I feel pretty good about it,” he added.

The Trump administration has several times said that a peace agreement was near, although Tehran has often disputed or downplayed such assertions.

Under the proposed arrangement, shipping through the Strait of Hormuz would resume without restrictions, while the United States would also lift its blockade on Iranian ports and ease some sanctions on Iranian oil exports.

Reports of the possible breakthrough triggered a decline in global oil prices amid expectations that the crucial waterway – which handles nearly one-fifth of the world’s oil and liquefied natural gas supply – could fully reopen.