Efforts to prevent a wider Middle East conflict entered a crucial phase on Thursday as reports emerged that the United States and Iran have reached a draft understanding to extend their current ceasefire by 60 days, although significant disagreements remain and no final agreement has been officially confirmed by both sides.
According to multiple international reports, negotiators from Washington and Tehran have discussed a memorandum of understanding that would prolong the existing truce while creating space for broader talks on Iran’s nuclear programme, sanctions relief, and maritime security in the Strait of Hormuz. However, the proposed framework reportedly still requires approval from US President Donald Trump.
The Strait of Hormuz remains the central issue in the negotiations. The strategic waterway handles a major share of global oil and gas shipments, and disruptions there have triggered sharp volatility in international energy markets over the past several months. Reports suggest the draft arrangement could include steps to reopen and stabilise shipping through the strait while reducing restrictions affecting Iranian oil exports.
Despite growing speculation about a breakthrough, Iranian officials have publicly downplayed or denied claims that a final agreement has been reached. Tehran has continued insisting on guarantees regarding sanctions relief, access to frozen assets, and recognition of its strategic interests before accepting any long-term settlement.
The proposed truce extension comes after months of conflict that began following US and Israeli military operations against Iranian targets earlier this year, triggering a broader regional crisis involving attacks on shipping routes, military confrontations in the Gulf, and escalating tensions involving Lebanon.
Even as diplomatic discussions continue, fresh tensions have emerged. US officials recently accused Iran of launching attack drones toward a commercial vessel in the Strait of Hormuz, an allegation that Tehran-linked sources disputed. The incident highlighted the fragile nature of the ceasefire and the continuing risk of military escalation despite ongoing negotiations.
The situation in Lebanon has also remained a major concern. Israeli military operations against Hezbollah and continuing cross-border hostilities have complicated wider peace efforts, with regional observers warning that instability in Lebanon could derail attempts to secure a broader settlement between Washington and Tehran.
Meanwhile, President Trump faces increasing political pressure at home over the negotiations. Several Republican leaders and foreign policy hawks have criticised reports of potential concessions to Iran, arguing that any agreement must fully address Tehran’s nuclear programme and regional military influence. Critics have compared parts of the emerging framework to the 2015 Iran nuclear deal that Trump had strongly opposed in the past.
The US administration has continued sending mixed signals. While Trump recently suggested that progress was being made and that Iran wanted a deal, he also stated that Washington remains dissatisfied with current negotiations and warned that military options remain available if diplomacy fails.
At the same time, the United States imposed fresh sanctions targeting Iran’s military-linked oil trade, demonstrating that economic pressure on Tehran continues despite diplomatic engagement. The sanctions target companies, vessels, and networks accused of facilitating Iranian petroleum exports linked to military entities.
Global energy markets have reacted cautiously to reports of a possible agreement. Oil prices have eased from recent highs amid optimism that shipping through the Strait of Hormuz could gradually normalise if a ceasefire extension is finalised and maritime tensions decline. However, analysts continue warning that any recovery in oil flows is likely to be gradual because of ongoing security risks in the region.
Diplomatic sources indicate that if the proposed 60-day truce extension moves forward, negotiations during that period could focus on sanctions, uranium enrichment, maritime security arrangements, and broader regional stability measures. However, officials caution that several contentious issues remain unresolved and that the situation remains highly unpredictable.
For now, the Middle East remains in a delicate holding pattern, with both diplomacy and military tensions continuing simultaneously. The coming days are expected to be critical as attention turns to whether Washington and Tehran can transform the fragile ceasefire into a more durable political agreement.
