60-day ceasefire extension, Hormuz to reopen: US-Iran truce deal taking shape but Trump yet to sign off
If confirmed by both sides, the ceasefire would mark the most significant step toward peace since the war began, one that has killed thousands and sent global energy markets into turmoil.
- May 29, 2026,
- Updated May 29, 2026 7:33 AM IST
A deal to extend the US-Iran ceasefire and reopen the Strait of Hormuz is taking shape, but it is not done yet. Four sources familiar with the matter told Reuters on Thursday that negotiators had reached an agreement that would extend the current truce by 60 days and restore unrestricted shipping through the strategic waterway, which has effectively been closed since the conflict began on February 28. US President Donald Trump has not yet approved the deal, and Iranian state media said the text had not been finalised.
If confirmed by both sides, it would mark the most significant step toward peace since the war began, one that has killed thousands and sent global energy markets into turmoil.
"We're not there yet, but we're very close, and we're going to keep on working at it," US Vice President JD Vance told reporters in Washington. "I can't guarantee that we're going to get there, but right now I feel pretty good about it," he added.
Iran's Tasnim news agency, citing a source close to the negotiating team, said the text of the agreement had not been finalised or confirmed. The Trump administration has on several occasions said a deal was imminent, only to have Tehran dispute or downplay the claims.
What the deal would involve
According to sources, the proposed agreement would guarantee unrestricted shipping through the Strait of Hormuz, a chokepoint through which roughly a fifth of the world's oil and liquefied natural gas supply typically passes, Reuters reported. Daily crossings through the Strait have dropped by 88% since the first US-Israeli strikes on Iran on February 28. The deal would also require the US to lift its blockade of Iranian ports and ease some sanctions on Iranian oil sales.
News of the possible agreement was enough to move markets; oil prices fell on hopes of a potential Hormuz reopening.
Violence on the ground
Even as diplomats worked toward an agreement, military exchanges continued. US Central Command said its forces shot down five Iranian attack drones and struck a ground control station in the port city of Bandar Abbas that was preparing to launch a sixth. Kuwaiti forces intercepted a ballistic missile fired toward the country, which hosts a large US military base.
A US official described the strikes as defensive and intended to preserve the ceasefire. The Islamic Revolutionary Guard Corps said it had targeted the US base responsible for the Bandar Abbas strike and warned that any repeat would bring a "more decisive response," according to Tasnim. Kuwait condemned the attack and called on Iran to immediately halt what it described as a serious escalation.
A separate claim by Iranian state television that a US aircraft had been shot down near Bushehr was directly contradicted by a US official.
The violence, the second flare-up of the week, coincided with Eid al-Adha, the Muslim holiday being observed across a region where multiple countries have been drawn into the conflict.
The unresolved issues
The broader diplomatic picture remains deeply complicated. Iran has called for sanctions to be lifted, frozen assets to be released, and US forces to be withdrawn from the region. Washington has demanded that Iran dismantle its nuclear programme, which Tehran insists is for peaceful purposes. Iran has also insisted that any final peace deal must address Israel's ongoing military operations in Lebanon, a conflict that shows no signs of abating. Israel said it had struck Hezbollah infrastructure in the southern city of Tyre and carried out an additional strike in Beirut. The Lebanese army confirmed that one of its soldiers had been killed in a strike.
Warning to Oman
A separate flashpoint emerged involving Oman. The US warned Oman against participating in any effort with Iran to impose tolls on shipping through the Strait of Hormuz. Trump went further, threatening to bomb the country, a striking statement given the long-standing economic and military ties between Washington and Muscat.
Treasury Secretary Scott Bessent said Oman's ambassador had confirmed there were no plans to impose such tolls. Oman has not publicly raised the idea of joint control of the strait with Iran, saying only that it has discussed freedom of navigation with Tehran. Iran expressed solidarity with Oman following what it called threats from US officials.
Mediator Pakistan said its Foreign Minister Ishaq Dar would meet US Secretary of State Marco Rubio in Washington on Friday, though the significance of the visit remained unclear.
A deal to extend the US-Iran ceasefire and reopen the Strait of Hormuz is taking shape, but it is not done yet. Four sources familiar with the matter told Reuters on Thursday that negotiators had reached an agreement that would extend the current truce by 60 days and restore unrestricted shipping through the strategic waterway, which has effectively been closed since the conflict began on February 28. US President Donald Trump has not yet approved the deal, and Iranian state media said the text had not been finalised.
If confirmed by both sides, it would mark the most significant step toward peace since the war began, one that has killed thousands and sent global energy markets into turmoil.
"We're not there yet, but we're very close, and we're going to keep on working at it," US Vice President JD Vance told reporters in Washington. "I can't guarantee that we're going to get there, but right now I feel pretty good about it," he added.
Iran's Tasnim news agency, citing a source close to the negotiating team, said the text of the agreement had not been finalised or confirmed. The Trump administration has on several occasions said a deal was imminent, only to have Tehran dispute or downplay the claims.
What the deal would involve
According to sources, the proposed agreement would guarantee unrestricted shipping through the Strait of Hormuz, a chokepoint through which roughly a fifth of the world's oil and liquefied natural gas supply typically passes, Reuters reported. Daily crossings through the Strait have dropped by 88% since the first US-Israeli strikes on Iran on February 28. The deal would also require the US to lift its blockade of Iranian ports and ease some sanctions on Iranian oil sales.
News of the possible agreement was enough to move markets; oil prices fell on hopes of a potential Hormuz reopening.
Violence on the ground
Even as diplomats worked toward an agreement, military exchanges continued. US Central Command said its forces shot down five Iranian attack drones and struck a ground control station in the port city of Bandar Abbas that was preparing to launch a sixth. Kuwaiti forces intercepted a ballistic missile fired toward the country, which hosts a large US military base.
A US official described the strikes as defensive and intended to preserve the ceasefire. The Islamic Revolutionary Guard Corps said it had targeted the US base responsible for the Bandar Abbas strike and warned that any repeat would bring a "more decisive response," according to Tasnim. Kuwait condemned the attack and called on Iran to immediately halt what it described as a serious escalation.
A separate claim by Iranian state television that a US aircraft had been shot down near Bushehr was directly contradicted by a US official.
The violence, the second flare-up of the week, coincided with Eid al-Adha, the Muslim holiday being observed across a region where multiple countries have been drawn into the conflict.
The unresolved issues
The broader diplomatic picture remains deeply complicated. Iran has called for sanctions to be lifted, frozen assets to be released, and US forces to be withdrawn from the region. Washington has demanded that Iran dismantle its nuclear programme, which Tehran insists is for peaceful purposes. Iran has also insisted that any final peace deal must address Israel's ongoing military operations in Lebanon, a conflict that shows no signs of abating. Israel said it had struck Hezbollah infrastructure in the southern city of Tyre and carried out an additional strike in Beirut. The Lebanese army confirmed that one of its soldiers had been killed in a strike.
Warning to Oman
A separate flashpoint emerged involving Oman. The US warned Oman against participating in any effort with Iran to impose tolls on shipping through the Strait of Hormuz. Trump went further, threatening to bomb the country, a striking statement given the long-standing economic and military ties between Washington and Muscat.
Treasury Secretary Scott Bessent said Oman's ambassador had confirmed there were no plans to impose such tolls. Oman has not publicly raised the idea of joint control of the strait with Iran, saying only that it has discussed freedom of navigation with Tehran. Iran expressed solidarity with Oman following what it called threats from US officials.
Mediator Pakistan said its Foreign Minister Ishaq Dar would meet US Secretary of State Marco Rubio in Washington on Friday, though the significance of the visit remained unclear.