The United States and Iran have come to an agreement on a memorandum of understanding (MoU) to extend the ceasefire for an additional 60 days to facilitate formal negotiations. However, U.S. President Donald Trump has not yet provided his approval.

If approved, the agreement would represent the most significant progress toward a lasting resolution to hostilities since the war began in late February.

What does the 60-day ceasefire involve? Let’s delve deeper into the proposed ceasefire agreement.

U.S.-Iran truce details

The agreement will entail Iran's pledge to refrain from pursuing nuclear weapons, along with its commitment to relinquish its stockpile of highly enriched uranium, two regional officials familiar with the negotiations told AP .

One official indicated that specifics of how Iran will dispose of its highly enriched uranium will be a matter of further discussion over the next 60 days. It is anticipated that part of this uranium will be diluted, while the remainder could be sent to a third country, possibly Russia. The International Atomic Energy Agency (IAEA) reports that Iran currently possesses 440.9 kilograms of uranium enriched to 60% purity, which is a short technical step away from reaching weapons-grade levels of 90%.

Also read: U.S.-Iran truce deal LIVE updates

Strait of Hormuz reopens

The official also noted that the Strait of Hormuz will gradually reopen as the U.S. lifts its blockade of Iranian ports. The strait became a significant point of tension early in the conflict, with the U.S. and Iran vying for dominance over this crucial waterway, through which about 20% of the world's oil supply was transported daily.

Before the war, the channel was fully accessible to commercial shipping, but Iran shut it down as an initial act of retaliation, imposing a blockade that has disrupted the global oil market and affected related sectors like fertilizer production.

Oil sanctions

The U.S. is also expected to permit Iran to sell its oil through sanctions waivers, according to the second official briefed on the discussions. Oil prices have surged since the onset of the U.S.-Iran war and the effective closure of the strait, disrupting global supply and driving domestic gas prices close to record levels.

Negotiations regarding sanctions relief and the release of Iran's frozen assets will also take place during this 60-day period. Both officials remarked that the draft agreement would address a cessation of hostilities between Israel and Hezbollah, alongside a commitment to refrain from interfering in the domestic matters of regional countries. The officials chose to remain anonymous in order to discuss these confidential negotiations.

Will Trump sign the ceasefire agreement?

The U.S. sources confirmed reporting by Axios that the two sides had agreed on a memorandum of understanding to prolong the ceasefire and launch negotiations on Iran’s nuclear programme.

But Iran’s Tasnim news agency, citing ‌a source close to the ⁠negotiating team, said on Thursday (May 28, 2026) ‌the text of a potential ‌memorandum ‌of ⁠understanding between ⁠Iran and the United States had not yet ‌been finalised or confirmed.

The source said Tehran ‌had not informed the Pakistani mediator that ⁠the text was complete and ‌would notify both the mediator and the public once finalised, ‌adding that Western media reports claiming the agreement ⁠had already been ⁠finalised were false.

However, Mr. Trump is yet to respond positively to the proposed ceasefire deal. “Iran is very ​much ‌intent, they want very much to make a deal. ‌So far they ​haven’t gotten there ... we’re ⁠not satisfied with it, but we will ‌be. We will be either that or we’ll have to just finish ‌the job,” Mr. Trump ​told reporters at a cabinet ⁠meeting at the White ⁠House on ​Wednesday (May 27).

Meanwhile, the U.S. announced the implementation of new sanctions targeting Iran’s military oil trade.