US, Iran near 60-day accord to extend ceasefire and restart nuclear talks; Trump approval pending

The United States and Iran have reached a tentative memorandum of understanding (MoU) that would extend the current ceasefire by 60 days and pave the way for fresh negotiations on Tehran's nuclear programme, senior US officials said on Thursday.

However, the proposed agreement still awaits final approval from US President Donald Trump, who has not yet decided whether to endorse the deal.

"Everything depends on what the president wants to do," US Treasury Secretary Scott Bessent told reporters at a White House briefing.

"And President Donald Trump is not going to make a bad deal for the American people," he added.

Vice President JD Vance, who led the US negotiating team in talks with Iran in Islamabad in April and has remained closely involved in the diplomatic effort, said Washington and Tehran were "very close" to finalising the MoU.

"We're going back and forth on a couple of language points. We've made a lot of progress here," Vance said.

He noted that differences remain over Iran's highly enriched uranium stockpile and the future of its uranium enrichment activities.

"There are a couple of issues on the nuclear stuff, the highly enriched stockpile, and also the question of enrichment. So we're going back and forth with them. We do think they're negotiating, at least so far, in good faith," Vance said.

"Hopefully, we'll continue to make progress and the President will be in a position where he can endorse the agreement, but obviously that's still TBD," he added.

The proposed MOU would formally extend the ceasefire, reopen the Strait of Hormuz to international shipping and launch a new round of negotiations aimed at addressing concerns over Iran's nuclear programme, according to US media reports.

The agreement would mark the most significant diplomatic breakthrough since the conflict between the two countries began.

However, a comprehensive settlement addressing Trump's demands on Iran's nuclear activities would require further intensive negotiations.

Previous attempts to secure an agreement had repeatedly stalled despite periods of apparent progress.

Iran has not publicly confirmed the reported understanding.

Under the tentative arrangement, Iran would reportedly be barred from imposing tolls on vessels passing through the Strait of Hormuz and would be required to remove all mines from the crucial waterway within 30 days.

The strait, through which about one-fifth of the world's traded oil and natural gas typically passes, has effectively remained closed during the conflict, disrupting global energy markets and pushing up oil prices.

"The cost of oil could come down very quickly" once a deal is completed, Bessent said.

The proposed agreement also envisages a gradual easing of US naval restrictions on Iranian ports and a relaxation of sanctions that would allow Tehran to increase its oil exports.

One of the key issues expected to dominate negotiations during the 60-day ceasefire period is the fate of Iran's stockpile of highly enriched uranium.

According to the International Atomic Energy Agency, Iran possesses 440.9 kilograms of uranium enriched up to 60% purity, a level considered technically close to weapons-grade material.

Iran has not publicly committed to relinquishing the stockpile, which is believed to be located at nuclear facilities that suffered extensive damage during US air strikes last year.

Tehran may seek to transfer the material to a third country, potentially China or Russia, both of which maintain close ties with Iran.

However, Trump indicated on Wednesday that he would be uncomfortable with such an arrangement.