U.S. and Iranian negotiators have reached a tentative agreement to extend the ceasefire in the ongoing conflict by 60 days and initiate a new round of discussions regarding Iran's nuclear program, according to a U.S. official familiar with the matter. The official spoke on condition of anonymity as they were not authorized to comment publicly.
Iran has not yet confirmed any deal. Vice President JD Vance confirmed the tentative agreement on Thursday evening but noted that it remains unclear whether President Donald Trump will approve it. "It's hard to say exactly when or if the president's going to sign," Vance told reporters, adding, "We're going back and forth on a couple of language points."
Strait of Hormuz Provisions
The emerging memorandum of understanding addresses the Strait of Hormuz, a critical waterway for global oil trade. Under the terms, Iran will be prohibited from imposing tolls on the strait and must remove all mines from the waterway within 30 days. During the war, Iran effectively closed the strait, which previously handled about one-fifth of the world's traded oil and natural gas, causing oil prices to surge worldwide. U.S. Treasury Secretary Scott Bessent predicted that oil costs could "come down very quickly" once a final deal is reached.
Iran has allowed some commercial vessels to pass—approximately two dozen daily in recent days, compared to over 100 before the war—but has also charged tolls for certain ships. Earlier this month, Iran established a formal gatekeeper agency, prompting new U.S. sanctions this week.
U.S. Concessions and Sanctions
Under the tentative agreement, the U.S. would gradually lift its naval blockade on Iranian ports and relax sanctions, enabling Iran to increase its oil sales. However, even as word of the potential deal emerged, the U.S. Treasury Department imposed additional sanctions on the Iranian military's oil sales arm, extending the Trump administration's economic pressure campaign. The new penalties were first reported by The Associated Press.
Nuclear Program Discussions
Among the first issues to be negotiated during the 60-day ceasefire is the fate of Iran's highly enriched uranium. Iran possesses 440.9 kilograms (972 pounds) of uranium enriched up to 60% purity, a short technical step from weapons-grade levels of 90%, according to the International Atomic Energy Agency. Vance suggested that negotiators are working to outline general terms on the highly enriched uranium in the tentative agreement, with specifics to be detailed in subsequent talks. "We're going back and forth on a couple of issues on the nuclear stuff, the highly enriched stockpile, and also the question of enrichment," Vance said.
Iran has not publicly committed to relinquishing the stockpile, which is believed to be stored at three nuclear sites damaged by U.S. airstrikes last year. Nuclear analysts have suggested that Iran might consider China or Russia as acceptable third parties to take possession of the enriched uranium, but Trump stated Wednesday that he "wouldn't be comfortable" with such a plan.
While Trump and his team have emphasized that one of their primary objectives is ensuring Iran cannot develop a nuclear weapon, Vance framed the war's accomplishments as less definitive. "We're in a position where we could substantially set back their nuclear program, not just during the term of this president but over the long term," Vance said. "That's a very, very good thing for the American people."
Regional Tensions
Iran has insisted that any deal must include an end to Israel's military operations in Lebanon against the Iranian-backed militant group Hezbollah. Tensions deepened Thursday as Israel conducted an airstrike on a southern suburb of Beirut and other strikes in the southern coastal city of Tyre, killing at least 14 people across southern Lebanon.
Kuwait announced that its air-defense systems intercepted incoming missiles and drones on Thursday, without specifying the targets. Iran said it retaliated for strikes earlier in the week by firing on a U.S. base in an unnamed Gulf state. The Kuwaiti Foreign Ministry condemned Iran for what it called "blatant aggression," and U.S. Central Command described the attack as an "egregious ceasefire violation." Kuwait has repeatedly come under fire from Iran and Iranian-backed Shiite militias in Iraq since the April ceasefire began.
The exchange followed U.S. strikes late Wednesday that shot down four one-way attack drones threatening the strait and hit an Iranian ground-control station in Bandar Abbas. Iran's paramilitary Revolutionary Guard acknowledged the attack and said it launched a retaliatory strike on the air base that initiated the assaults, without specifying whether the response targeted Kuwait.
On Monday, the U.S. conducted what the Pentagon called "self-defense" strikes on missile launch sites and minelaying boats in southern Iran. Despite traded strikes and accusations of ceasefire violations, Washington and Tehran have not returned to full-scale hostilities and continue negotiating. Vance remarked, "Ceasefires are always a little messy," but added that it is "very much holding."
Later Thursday, Iran's defenses destroyed "a hostile aircraft" around the southern city of Jam, according to the area's governor, Masood Tangestani, speaking to state broadcaster IRIB.
