The United States and Iran have agreed to a 60-day extension of their ceasefire.
Washington lifted its blockade of Iranian ports and Tehran restoring shipping through the Strait of Hormuz.
Major issues remain unresolved, including the future of Iran’s uranium stockpile, sanctions relief, regional security concerns and whether Israel will support or comply with the broader peace framework.
The United States and Iran have outlined the terms of an interim agreement aimed at consolidating a fragile ceasefire, reopening critical trade routes and creating space for negotiations on Tehran’s nuclear programme, although major questions remain about a permanent settlement.
US President Donald Trump on Tuesday said that the agreement would prevent Iran from obtaining a nuclear weapon, while a senior US official said it would immediately allow Tehran to resume oil sales, Reuters reported.
The memorandum of understanding, which has not yet been made public, extends a ceasefire first announced in April by another 60 days. The additional period is intended to allow both sides to negotiate a lasting truce after months of conflict.
Under the arrangement, Washington will lift its blockade of Iranian ports, while Tehran will restore the movement of oil tankers and commercial shipping through the Strait of Hormuz, which it has effectively restricted since the US and Israel launched strikes on February 28.
Trump said the agreement makes clear that Iran will not acquire a nuclear weapon and that the full text will be released in the coming days. Iran has consistently maintained that its nuclear programme is solely for peaceful purposes and that it has no intention of developing nuclear weapons.
The agreement nevertheless leaves several of the objectives cited by Trump and Israel at the outset of the war unresolved. Iran’s government remains in power, its ballistic missile programme remains intact and there is no indication that Tehran has agreed to end support for regional groups such as Hezbollah.
The deal also carries political risks for both sides. Trump faces criticism from some Republicans ahead of November’s midterm elections, while Iran’s leadership could come under pressure at home if the agreement fails to deliver economic relief after a costly conflict.
Israel, which was not directly involved in the negotiations, has distanced itself from both the April ceasefire and the latest US-Iran understanding, raising questions about the durability of the arrangement.
The war has reverberated across the region, killing more than 7,000 people, most of them in Iran and Lebanon, which Israel invaded in March after Hezbollah entered the conflict in support of Tehran.
Differences have also emerged over the scope of the agreement. US Vice President JD Vance said it included provisions relating to Israel and Lebanon, a claim disputed by Israeli Prime Minister Benjamin Netanyahu, who said on Monday that Israel is not bound by the arrangement and would not withdraw from southern Lebanon. A Hezbollah spokesperson told Reuters that the group did not believe Iran would accept a permanent truce while Israeli forces remained in occupied territory.
Iran’s Khatam al-Anbiya Central Headquarters warned that Israel should expect a strong response if attacks on southern Lebanon continue.
According to a senior US official, the agreement allows Iran to immediately resume selling oil and fuel and includes banking, transportation and insurance mechanisms to facilitate those exports. US and Iranian officials have also suggested that a broader deal could eventually unlock substantial economic benefits, including sanctions relief, access to frozen assets and a proposed $300 billion reconstruction fund financed by Gulf states affected by the conflict.
The next 60 days are expected to focus on some of the most difficult issues left unresolved before the war interrupted negotiations in February, particularly the future of Iran’s nuclear programme. However, two issues frequently cited by Trump and Netanyahu as reasons for military action — Iran’s support for regional armed groups and its missile programme — do not appear to be part of the current negotiating agenda.
Trump indicated optimism about the next phase of talks, saying he was "not happy" with the way Israel had conducted its military campaign while expressing confidence that diplomacy could move quickly.
"Iran wants to get it done," Trump told reporters about the next phase of negotiations with Iran, a sentiment he has repeated since the war's earliest days. "They have to get back to business, and the relationship is now normalized, so I think it's going to go pretty quickly."
Earlier, he described the deal as "a wall to a nuclear weapon" for Iran.
The negotiations are also being viewed through the lens of the 2015 nuclear agreement, which sharply limited Iran’s enrichment activities before Trump withdrew the United States from the deal during his first term. The collapse of that accord led Iran to accumulate a significant stockpile of highly enriched uranium, which Trump has repeatedly said should be removed or destroyed.
Speaking at the G7 summit in France, Trump said he supported the idea of submitting the new agreement to Congress for review after criticism from fellow Republicans that lawmakers had been excluded from the process. He has also faced scrutiny for launching military action without congressional authorisation.
Despite both governments stating that the Strait of Hormuz will reopen from Friday, shipping companies remain cautious. Iranian state television reported that steps were being taken to lift the maritime blockade, while emphasising that vessels would still need to coordinate with Iran’s Revolutionary Guards.
The United States has said the waterway will remain toll-free for the next 60 days and expects that arrangement to continue under any future agreement. Iran, however, has indicated that it intends to retain oversight of the strait jointly with Oman.
(Reuters reported)
