US and Iran Near Deal to Extend Ceasefire, Reopen Strait of Hormuz

The US and Iran are poised to sign a deal which will prolong the ceasefire another 60 days, during which the Strait of Hormuz will be reopened and restrictions on oil trade against Tehran lifted, Axios has reported, citing American officials. In the meantime, the sides will try to reach a final deal to end the conflict, it added.

US President Donald Trump claimed on Saturday that the memorandum of understanding (MOU) has been “largely negotiated” and is currently being finalized. Iranian Foreign Ministry spokesman Esmail Baghaei said the same day that the sides were moving closer to a “convergence of views,” but noted that Tehran remains concerned about a possible U-turn by Washington.

A fragile truce between Washington and Tehran was established in early April after a month of intense hostilities initiated by the US and Israel. Since then, Trump has repeatedly threatened Iran with a renewed attack if it refuses to make concessions.

Axios said in an article on Sunday that as part of the MOU, navigation through the Strait of Hormuz, which accounts for some 25% of global crude trade, would be reopened for all vessels without any toll.

In exchange, Washington would remove its blockade on Iranian ports and allow the unrestricted sale of oil by Tehran, the sources said.

During the two-month ceasefire, which could be extended further by mutual consent, the sides will engage in negotiations on the Iranian nuclear program, they added.

According to the US officials, the proposed MOU also envisages an end to the Israeli military campaign against Hezbollah in Lebanon, which West Jerusalem launched shortly after the attack on Iran.

The lifting of other economic sanctions against Tehran and the unfreezing of Iranian funds would only happen as part of a final agreement, they added.

Baghaei said in a TV interview that the current discussions between the US and Iran “focus broadly on ending the war” and stopping what he called “US piracy and maritime banditry.”

The Strait of Hormuz “has nothing to do with America” as it’s up to coastal states – Iran and Oman – to define a mechanism for its use, he insisted.

“At this stage, we are not discussing the details of the nuclear issue,” but it will likely be addressed later during the truce, the spokesman said.

According to Baghaei, the lifting of “illegal and inhumane” sanctions and an unblocking of Iranian funds remains Tehran’s “constant demand” in contacts with intermediaries.