The United States and Iran have reportedly reached a 60-day memorandum of understanding to extend the ceasefire and launch nuclear negotiations, according to a report by Axios. president Donald Trump has not yet approved the deal , which includes provisions on Strait of Hormuz passage, sanctions relief, and Iran's nuclear commitments. Neither government has formally confirmed the agreement, and markets initially reacted with a retreat in oil prices.

The 60-Day MoU: What the Draft Agreement Actually Says

According to Axios, which cites two U.S. officials and a regional source, the draft MoU includes specific security and economic provisions. Navigation through the Strait of Hormuz is to remain unrestricted, with no tolls or harassment of vessels permitted. iran is required to remove all mines it has placed in the strait within 30 days, while the U.S.-led naval blockade of Iranian ports and coastlines would be lifted gradually. A core element is Iran's commitment not to seek to acquire nuclear weapons. The subsequent 60-day negotiation period will focus intensely on the scope and scale of Iran's enriched uranium stockpiles and its overall enrichment capabilities. Separately, the U.S. has tentatively agreed to open discussions on easing its comprehensive sanctions regime and unfreezing billions of dollars in Iranian financial assets held overseas.

Why the Strait of Hormuz and Iran's Mined Waters Are Central

The Strait of Hormuz is a critical chokepoint for global oil shipments, and its effective closure by Iran since April 13 has been a central factor in global economic strain. The report says Iran must remove all mines within 30 days under the draft MoU, while the U.S. blockade would be lifted gradually. this provision addresses a key security concern: the Pentagon recently conducted what it described as 'defensive' strikes on missile launch sites and mine-laying vessels in southern Iran, actions Iran condemned as evidence of American 'bad faith.' The European Central Bank has warned the broader conflict could trigger a financial crisis, underscoring the strait's significance to global energy markets.

Trump's Unresolved Veto: A Deal Waiting on One Signature

The entire memorandum is pending final approval from President Trump, who during a cabinet meeting expressed dissatisfaction with the progress of negotiations. According to Axios, he explicitly stated that the U.S. is not currently considering any easing of sanctions—a key demand from Tehran. This places the draft agreement in a precarious position: even though diplomatic talks produced the MoU, Trump's stance could derail it. The absence of official confirmation from either government adds another layer of uncertainty, leaving the deal's fate reliant on a single political calculation.

From Feb 28 to April 8: The War That Nearly Broke the Global Economy

The US-Iran war began on February 28 and engulfed the broader Middle East, with a fragile ceasefire taking effect on April 8.. Since then, Iran tightly controlled passage through the Strait of Hormuz while the U.S. maintained its naval blockade. Recent escalation—an Iranian missile attack on a U.S. air base in Kuwait, retaliatory American strikes on an Iranian drone operation—highighted the hostilities' volatility. The European Central Bank's warning of a potential financial crisis reflects the high stakes:the conflict has disrupted regional oil, natural gas, and essential supplies, making the current diplomatic window critical for global economic stability.