US-Iran Ceasefire Extension Deal Reportedly Awaits Trump's Signature
US and Iranian negotiators have reportedly reached a tentative agreement to extend their ceasefire by 60 days and begin a new round of talks on Iran's nuclear programme. Vice President JD Vance confirmed the tentative agreement on Thursday evening but stated 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 that negotiators are still "going back and forth on a couple of language points."
The president has previously insisted that any deal must include the reopening of the Strait of Hormuz, a commitment from Iran not to pursue a nuclear programme, and the surrender of its enriched uranium stockpile. US officials indicated that the memorandum of understanding (MOU) would allow "unrestricted" shipping through the Strait of Hormuz, with Iran required to remove all mines from the vital oil passageway within 30 days. In return, the US naval blockade would be lifted, and Iran would pledge not to pursue nuclear weapons, according to Axios.
Oil Prices Drop on Ceasefire Hopes
Oil futures fell more than 1 per cent on Friday and were on track for their steepest weekly decline since early April, following reports of a potential US-Iran ceasefire deal. Brent crude futures for July declined by $1.04, or 1.1 per cent, to $92.67 a barrel, while US oil futures fell $1.26, or 1.4 per cent, to $87.64 a barrel. Brent plunged 10.5 per cent this week, the steepest drop since the week ending 6 April, and West Texas Intermediate fell 9.2 per cent, the biggest weekly loss since the week ending 13 April.
Iranian Media Denies Draft Agreement Reports
Iranian state media denied reports that a draft agreement for the ceasefire extension is with President Trump for approval. Meanwhile, a US official denied Iranian claims that a US aircraft was downed near Bushehr in southern Iran, calling the reports false. Iran's state television had claimed that a US aircraft was destroyed in the area without providing further details.
Iran Made 'Significant Concessions', Says Trump Aide
White House Deputy Chief of Staff Stephen Miller claimed that Iran has made "many other concessions" beyond agreeing to reopen the Strait of Hormuz. In an interview with Fox News, Miller described the concessions as "significant, material, and dramatic," adding that they "would have been impossible only a short time ago." However, he cautioned, "there is no deal until there is a deal; nothing is final until it is final." Miller reiterated that President Trump reserves the option to do whatever is necessary to defend US national security.
Strait of Hormuz Tolls and Nuclear Stockpile Key Issues
The MOU explicitly prohibits Iran from imposing tolls on the Strait of Hormuz and requires the removal of all mines from the waterway within 30 days. Iran had effectively closed the strait during the war, which carries about a fifth of the world's traded oil and natural gas, sending oil prices soaring. US Treasury Secretary Scott Bessent stated that oil costs could "come down very quickly" once a deal is finalised. Iran has allowed some commercial vessels to pass—about two dozen daily recently, compared with over 100 before the war—but has charged tolls for some ships, leading to new US sanctions.
Regarding Iran's nuclear programme, the 60-day ceasefire will include negotiations on the fate of Iran's highly enriched uranium stockpile, which stands at 440.9 kg enriched up to 60 per cent purity, a short technical step from weapons-grade levels. Vice President Vance said negotiators are trying to strike general terms on the stockpile, with specifics to be hammered out in subsequent talks.
Regional Developments
In a related development, Secretary of State Marco Rubio is scheduled to meet Pakistani Foreign Minister Muhammad Ishaq Dar in Washington as Islamabad attempts to negotiate a permanent peace pact to end the US-Israeli war with Iran. Meanwhile, Israel continues its bombing campaign in Lebanon, with rescue workers inspecting damage from an air strike in the Choueifat area south of Beirut.
Reports also indicate that Saudi Arabia may lower its official selling prices for crude oil to Asia in July for a second consecutive month, as spot premiums ease amid sluggish demand despite Middle East tensions.
