The United States and Iran reached a preliminary agreement on Thursday to extend their ceasefire and ease restrictions on shipping through the Strait of Hormuz, sources familiar with the talks told Reuters, although U.S. President Donald Trump has yet to approve the deal. Iranian state media added that negotiations were still ongoing.
Four sources familiar with the discussions said the proposed agreement would extend the truce by another 60 days and reopen the strategic waterway to unrestricted maritime traffic while negotiators continue talks on contentious issues including Iran’s nuclear programme.
If endorsed by authorities in Washington and Tehran, the agreement would mark the most significant step toward ending the conflict since fighting erupted on Feb. 28.
The development followed renewed exchanges of fire between the two countries, the latest flare-up since the ceasefire first took effect in early April.
Report said Trump has not yet signed off on the proposal, while Iran has not officially commented on the reported agreement, first disclosed by Axios.Iran’s Tasnim news agency.
“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,” U.S. Vice President JD Vance told reporters in Washington.
The Trump administration has repeatedly said a breakthrough was near, only for Tehran to dispute or minimise the claims.
Under the proposed arrangement, shipping through the Strait of Hormuz would resume without restrictions, while Washington would lift its blockade on Iranian ports and ease some sanctions on Iranian oil exports.
News of the potential agreement pushed oil prices lower, as investors anticipated the reopening of the Strait of Hormuz, a critical route for about one-fifth of global oil and liquefied natural gas shipments.
Earlier on Thursday, U.S. Central Command said American forces had shot down five Iranian attack drones and struck a ground control station near the port city of Bandar Abbas that was preparing to launch another drone.
Kuwaiti forces said they later intercepted a ballistic missile fired toward the country, which hosts a major U.S. military base.
A U.S. official also denied Iranian state television reports that an American aircraft had been shot down near Bushehr.