American and Iranian negotiators have hammered out a draft 60-day memorandum of understanding that would extend the current ceasefire, reopen the Strait of Hormuz, and kick off formal talks about Iran’s nuclear program. The catch: President Donald Trump still has to sign off on it.
The preliminary deal, reported by Axios on May 28, would allow Iran to freely export oil for the duration of the 60-day window while US forces remain positioned in the region.
How we got here
The current conflict escalation traces back to late February 2026, when tensions between Washington and Tehran spiraled into what many feared could become a broader regional war. By early April, both sides agreed to a two-week ceasefire, a fragile arrangement that bought time but resolved nothing fundamental.
The draft MOU doesn’t just extend the pause in hostilities. It creates a framework for reopening the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil passes daily.
