A ship remains anchored on May 16, 2026 in the Strait of Hormuz near Larak Island, Iran. Negotiations between the U.S. and Iran over opening this critical waterway have largely stalled as the countries have rejected each other’s proposals to end the war that began when the U.S. and Israel attacked Iran on February 28.
Majid Saeedi | Getty Images News | Getty Images
Mediators believe they are nearing a deal to extend the U.S. ceasefire with Iran by 60 days and establish a framework for nuclear talks, the Financial Times reported Saturday, citing people briefed on the negotiations.
The agreement would include a gradual reopening of the Strait of Hormuz, a commitment to discuss Iran’s stockpile of highly enriched uranium, eased sanctions, and the phased unfreezing of Tehran’s overseas assets, the FT reported.
Iran’s foreign ministry spokesman said Tehran is finalizing a “memorandum of understanding” to end the war as a first phase, before moving to broader talks within 30 to 60 days.
“The deal seems to be going in the right direction. It’s with the Americans now for review,” a diplomat briefed on the talks told the FT.
U.S. President Donald Trump will consider Iran’s draft agreement with his advisers and could make a decision on Sunday, Axios reported.
There has been a fragile ceasefire in place since April 8, punctuated by skirmishes as the U.S. and Iran jockey over the Strait of Hormuz, a key passage for global energy trade. The conflict has set off what Gulf states called the worst global energy crisis in decades, with higher energy prices in the U.S. feeding rising inflation and expectations that the Federal Reserve may need to increase interest rates.
Pakistani and Qatari negotiators held talks with Iranian counterparts on Thursday and Friday, while staying in regular contact with U.S. envoy Steve Witkoff, the FT reported.
Iran’s top negotiator told a Pakistani counterpart that Iran wouldn’t compromise its “legitimate rights” and expressed distrust of the U.S., Reuters reported Saturday.
Iran’s armed forces have rebuilt capabilities damaged since the start of the conflict in late February, Iran’s Parliament Speaker Mohammad Baqer Qalibaf said, per Reuters.
A major sticking point remains Trump’s demand that Iran surrender its enriched uranium and permanently relinquish any nuclear weapons capacity, the FT said.
Trump has also demanded Iran dismantle the Natanz, Fordow and Isfahan nuclear sites, which the U.S. bombed after joining Israel’s war against Iran last June.
Iran’s foreign ministry acknowledged the two sides remain both “very far and very close” to an agreement, noting the U.S. had put forth “conflicting stances several times.”
Trump said Monday the U.S. held off from renewing attacks on Iran this week while “serious negotiations” were underway.
Gulf states including Saudi Arabia, Qatar and the UAE have urged Trump to suspend the military assault, fearing Iranian retaliation against the region and further damage to global energy markets.
This story is developing. Please check back for updates.
