• A 60-day ceasefire extension between the U.S. and Iran has been agreed in principle, pending President Donald Trump's sign-off.
  • Global oil markets (XOM) reacted to the news, with prices fluctuating on expectations of eased tensions and potential sanctions relief.
  • The framework aims to open negotiations on Iran's nuclear program and stabilize regional security, including Hormuz Strait navigation.

A memorandum of understanding for a 60-day ceasefire extension between the United States and Iran has been reached, according to a source familiar with the matter. However, the deal remains contingent on final approval from President Donald Trump, whose sign-off is the critical remaining step before the framework can move to formal implementation.

The proposed extension builds on recent diplomatic efforts to de-escalate tensions and create space for broader negotiations. Most terms are reportedly largely settled, focusing on restoring channels for talks on Iran's nuclear program and addressing security dynamics in the Red Sea and Gulf regions. The Hormuz Strait, a vital chokepoint for global oil shipments (CVX), is a key consideration embedded in the discussions.

“The framework is there, but without Trump’s approval, it’s just a piece of paper,” the source said, speaking on condition of anonymity. Attempts to reach the White House for comment were unsuccessful.

Oil markets quickly responded to the news, with crude prices moving on expectations that an extended truce could ease sanctions and allow Iran to boost exports. Analysts noted that any delay in approval or perceived concessions could roil markets and draw criticism from hardliners.

Tehran has signaled a willingness to pursue nuclear negotiations alongside sanctions relief, while U.S. officials have tied any relief to verifiable progress. The 60-day window, if approved, would provide a testing ground for compliance and confidence-building.

The development echoes past U.S.-Iran interim agreements, where temporary truces aimed to build negotiation space but were often vulnerable to domestic political shifts. Observers will watch for official statements from the White House and any parallel moves on sanctions policy or regional security commitments (INTC).

Correction: A previous version of this article misstated the duration of the ceasefire as 90 days. The correct timeline is 60 days.