American and Iranian negotiators have agreed in principle on a framework that would freeze the Iran war for another 60 days while a permanent settlement is negotiated, US and Arab officials told reporters over the holiday weekend. The proposal landed in front of Iran’s leadership on Sunday and is awaiting sign-off from both President Donald Trump and Supreme Leader Ayatollah Ali Khamenei.
Under the draft memorandum, Iran would clear the naval mines it laid earlier this year and allow commercial shipping to resume through the Strait of Hormuz without tolls. In return, the United States would lift its blockade on Iranian ports and issue sanctions waivers permitting Iran to sell its oil on world markets during the 60-day window. Roughly a fifth of global seaborne crude moves through the strait in a normal year, and its closure since April has been the single largest shock to oil prices since 2022.
Secretary of State Marco Rubio said on Sunday that "significant progress" had been made and described the framework as the closest the two sides have come to a comprehensive deal since fighting broke out. Iranian Foreign Minister Abbas Araghchi countered that Washington was still seeking last-minute changes and accused the US team of "obstructing" a text that Tehran had been ready to accept.
Trump appeared to slow the pace himself on Sunday afternoon, posting on Truth Social that "time is on our side" and instructing his negotiators not to "rush into" a final document. The post walked back his own statement two days earlier that an agreement had been "largely negotiated" and that the strait would reopen "very soon." Aides described the shift as tactical leverage rather than a substantive change in the US position.
A separate track on Iran’s enrichment programme remains unresolved. The 60-day framework explicitly defers the nuclear question to a follow-on negotiation; Khamenei told his government earlier this week that Iran’s existing stockpile of enriched uranium would remain inside the country regardless of the eventual terms. Israeli officials have warned privately that any deal that allows Tehran to retain that material will draw a public objection from Prime Minister Benjamin Netanyahu.
Trump consulted by phone with the leaders of Saudi Arabia, Qatar, Egypt, Turkey and Pakistan on Saturday, and all five backed the framework. Saudi Crown Prince Mohammed bin Salman has been pressing for the strait to reopen before the start of the next OPEC+ meeting; Qatar and Turkey have offered to host the technical talks on nuclear monitoring that would follow.
Markets responded sharply on Monday. Brent crude fell roughly 5 per cent toward $98 a barrel and West Texas Intermediate slid below $92, unwinding most of the geopolitical premium added since the strait closed. The dollar weakened against the yen and oil-importer currencies in Asia rallied; Tokyo announced a $19 billion supplementary budget the same day to soften the residual hit from higher energy bills.
The framework leaves several deliberately ambiguous points. The text does not specify how Iran’s frozen overseas assets, estimated at more than $90 billion, would be released, nor does it set a timeline for restoring full diplomatic contact between Washington and Tehran. Both sides have agreed to revisit those questions during the 60-day window, alongside the nuclear track.
A signing, if it comes, would almost certainly take place outside both capitals. Officials briefed on the planning say Oman and Qatar are the leading candidates to host a ceremony, with Switzerland mentioned as a fallback. No date has been set, and Iranian state media on Monday morning continued to describe the talks as ongoing rather than concluded.