US Iran ceasefire deal enters final stages as a tentative memorandum of understanding outlines military withdrawal, Hormuz reopening, and a 60-day negotiation window
A historic moment may be imminent. Iranian state media reported that the United States and Iran are close to signing a tentative memorandum of understanding. The US Iran ceasefire deal would establish a 60-day truce and open space for comprehensive peace negotiations. Moreover, oil markets reacted immediately. Crude prices extended losses and slipped below $89 per barrel as traders priced in easing geopolitical risk around the Gulf.
The preliminary framework covers several significant provisions. US military forces would withdraw from areas near Iran. The US Navy would also lift its blockade operations around the Strait of Hormuz. Furthermore, Iran would restore commercial shipping traffic through the strait to pre-war levels within one month. Iran and Oman would jointly handle ship routing and traffic management in the Strait. The draft arrangement reportedly excludes military vessels.
The stakes extend well beyond the two countries. The Strait of Hormuz carries a significant share of the world’s oil supply. Therefore, reopening it would ease energy market pressures felt by economies far beyond the Middle East. Additionally, if both sides reach a final agreement within 60 days, they could submit the deal as a binding resolution to the United Nations Security Council.
The MoU functions as an interim mechanism rather than a permanent settlement. It gives both sides two months to negotiate a broader peace framework. Furthermore, this would mark one of the most significant de-escalation steps between Washington and Tehran in recent years. For Iran especially, the war carried devastating costs. The country lost the majority of its senior military leadership during the conflict, including Supreme Leader Ayatullah Syed Ali Khamenei.
Neither side has officially confirmed the terms yet. Details remain subject to change as negotiations continue. Still, multiple signals point toward a signing being closer than ever. Finally, the next few hours could determine whether this fragile framework holds or collapses at the last moment.
