U.S., Iran reach tentative deal to extend ceasefire and hold further talks

U.S. Treasury Secretary Scott Bessent answers questions durnig a press briefing at the White House on May 28, 2026. Photo by Win McNamee/Getty Images

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The U.S. and Iran have reached a tentative deal to extend a ceasefire by 60 days and launch further talks on Tehran’s nuclear program, a U.S. source familiar with the matter said, raising hopes the three-month conflict could be nearing a resolution.

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The source, who spoke on condition of anonymity to discuss private negotiations, confirmed an earlier report from Axios. President Donald Trump has yet to agree to the terms. Both countries have previously hailed progress, with Trump repeatedly indicating the U.S. was close to securing an agreement — only for the stalemate to drag on.

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Treasury Secretary Scott Bessent on Thursday would only say “the teams have been going back and forth” when pressed if an interim deal has been clinched. He insisted Trump’s three “red lines” — reopening the Strait of Hormuz, Iran turning over highly enriched uranium and ending its nuclear program — remain necessary for any pact.

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“If there can be no deal without those, why would there be a deal without those?” he said at a White House briefing. “Everything depends on what the president wants to do and President Trump is not going to make a bad deal for the American people, for the U.S.”

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The U.S. and Iran have had a fragile truce in place since early April, which has been interrupted by isolated military strikes. Axios reported that Trump asked for “a couple of days” to think about the agreement.

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Fada-Hossein Maleki, an Iranian lawmaker and member of the country’s parliamentary commission for national security, said negotiations between the U.S. and Iran have shown “significant progress,” according to the semi-official Iranian Students’ News Agency.

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The U.S. still has to decide on a number of Iran’s conditions, the ISNA quoted Maleki as saying, without giving details.

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Oil prices pared gains to trade near US$95 a barrel, having earlier risen after the two sides accused each other of breaching the ceasefire. Stocks and bonds both rallied on the news.

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The U.S.-Iran memorandum of understanding would state that shipping through the vital Strait of Hormuz would be “unrestricted,” Axios reported. Iran would have to remove all mines from the strait within 30 days, according to the report.

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Bessent also said there were no plans for Oman to levy tolls on shipments through the key waterway, one day after Trump said he would “blow them up” if the long-term ally started to charge for transit.

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The secretary said he had spoken to the Omani ambassador earlier Thursday and received assurances “there were no plans for tolling the strait.”

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The news followed overnight clashes between the U.S. and Iran, with both sides condemning the other for violating the truce.

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U.S. forces shot down four Iranian drones fired at a commercial ship and hit a launch unit near the Strait of Hormuz, according to a U.S. official, who said the strikes were defensive and the ceasefire remains intact. Iran targeted the U.S. base from which the assault came, state-run Press TV reported in a post on X.