The United States and Iran have reportedly reached a tentative agreement to extend their fragile ceasefire by 60 days while continuing negotiations over Tehran’s nuclear program.According to a U.S.source familiar with the discussions, the deal is intended to build on a truce that has been in place since early April, although it has been repeatedly disrupted by isolated military exchanges and mutual accusations of violations.

The proposed extension would also include further diplomatic talks aimed at addressing long-standing disputes over Iran’s nuclear activities and regional security concerns.Despite the reported progress, the agreement has not yet been formally approved by U.S.President Donald Trump, who has yet to confirm acceptance of the terms.U.S.officials, including Treasury Secretary Scott Bessent, have stressed that any deal must meet key American conditions, including restrictions related to Iran’s nuclear program, the handling of highly enriched uranium, and concerns over maritime security in the Strait of Hormuz.These remain central “red lines” for Washington.

The announcement comes amid ongoing instability in the region, including sporadic drone and missile incidents, as well as heightened tensions around the strategic Strait of Hormuz, through which a significant share of global oil shipments passes.Market reactions were immediate, with oil prices fluctuating and financial markets responding cautiously to the possibility of de-escalation.Iranian officials have also acknowledged progress in negotiations, though details remain limited and some conditions are still under discussion.

The situation remains fluid, with both sides balancing domestic political pressures and security concerns as they attempt to prevent further escalation and potentially move toward a broader diplomatic framework.