A senior US administration official has placed the odds of signing a memorandum of understanding with Iran at 80-85%, signaling that months of stop-and-start diplomacy may finally be approaching a concrete outcome. The potential deal would extend ceasefire measures, reopen the Strait of Hormuz, and lay the groundwork for broader negotiations over Iran’s nuclear program.
Iranian Foreign Minister Abbas Araghchi echoed the optimism, stating the agreement has never been closer to fruition. Oil markets didn’t wait for the ink to dry: Brent crude fell below $90 per barrel on the news.
What’s actually in the deal
The tentative MOU would extend existing ceasefire measures by 60 days. The agreement would also serve as a launching pad for deeper talks about Iran’s nuclear capabilities.
The Strait of Hormuz is the narrow waterway between Iran and Oman through which roughly a fifth of the world’s oil supply passes daily.
