Axios reports the U.S. and Iran have reached a tentative 60-day memorandum of understanding (MOU) to extend the ceasefire and begin formal nuclear negotiations.

• The agreement still requires final approval from President Trump, who reportedly asked for several days to review the proposal.
• U.S. officials say Iranian negotiators indicated they received approval from senior leadership and were prepared to sign.
• The proposed deal would mark the biggest diplomatic breakthrough since the conflict began, although a broader permanent agreement would still require lengthy negotiations.
• The MOU would guarantee “unrestricted” shipping through the Strait of Hormuz, including:
  • No tolls
  • No harassment of commercial ships
  • Removal of Iranian mines within 30 days
• The U.S. naval blockade would gradually be lifted as commercial shipping resumes.
• Iran would commit not to pursue a nuclear weapon.
• Early negotiations during the 60-day period would focus on:
  • Disposal of Iran’s highly enriched uranium
  • Future uranium enrichment limits
• The U.S. would agree to discuss:
  • Sanctions relief
  • Release of frozen Iranian assets
  • Mechanisms for humanitarian aid and goods shipments

Markets are likely to view the report as reducing immediate geopolitical and oil supply risks, especially with the focus on keeping the Strait of Hormuz open.

Skepticism remains because previous negotiations were also described as “close” before ultimately falling apart.

This article was written by Greg Michalowski at investinglive.com.