U.S. and Iran work toward deal to extend ceasefire and reopen Strait of Hormuz

Oil prices fell and global stocks rose over optimism for an agreement, but President Trump emphasized that a deal "isn't even fully negotiated yet."

By Sammy Westfall, Natalie Allison, John Hudson and Susannah George

The United States and Iran have developed a “framework” that extends their ceasefire 60 days as the two sides reach a “final deal” to end the war in Iran, while in the meantime, the Strait of Hormuz would be de-mined and reopened, a senior administration official said.

The official, however, said no agreement with Iran had been signed. It remains unclear how binding the framework is. A diplomat familiar with the matter said the latest proposal is awaiting Iran’s approval. The official and diplomat spoke on the condition of anonymity to publicly discuss ongoing negotiations.

Speaking to reporters Monday morning in New Delhi, Secretary of State Marco Rubio signaled cautious optimism for the deal, saying negotiators have “what I think is a pretty solid thing on the table in terms of their ability to open up the straits, get the straits open, enter into a very real, significant, time-limited negotiation on the nuclear matter, and hopefully we can pull it off.” He did not elaborate on the terms.

Markets echoed that optimism Monday, with the price of Brent crude oil down nearly 6 percent to about $97 a barrel and Asian stocks up for the day. U.S. markets are closed for Memorial Day.

President Donald Trump, meanwhile, responded to early criticism from Democrats and some fellow Republicans, saying in a post Monday morning on Truth Social that such people “know nothing about the potential deal I am making with Iran, things that haven’t even been negotiated yet.”

“The deal with Iran will either be a great and meaningful one, or there will be no deal,” he said.

Upon signing the memorandum of understanding, Iran would immediately reopen the Strait of Hormuz and take steps to ensure traffic returns to prewar conditions within 30 days, the proposal stipulates, according to the diplomat. Iran, the U.S. and allies would also immediately end military operations on every front, including Lebanon.

The diplomat said the proposal includes Iran reaffirming that it will never develop nuclear weapons and agreeing that its stockpile of enriched material will be disposed of under an agreed-upon method.

The memorandum of understanding “commits” the Iranians to not having a nuclear weapon, including “giving up the nuclear dust,” the senior U.S. administration official said, a reference to the country’s stockpile of highly enriched uranium. Over the next two months, the two sides will discuss “the mechanism” for doing so, added the official.

But questions remain about how quickly aspects of the framework would be implemented.

Trump’s Monday comments echoed a post on Sunday evening that the deal “isn’t even fully negotiated yet” and “nobody has seen it, or knows what it is.”

“So don’t listen to the losers, who are critical about something they know nothing about,” the president wrote, adding that he doesn’t “make bad deals!!”

Earlier in the day, Trump wrote that “negotiations are proceeding in an orderly and constructive manner.” He told his representatives “not to rush into a deal in that time is on our side,” he wrote.

“Both sides must take their time and get it right. There can be no mistakes!” he wrote, adding that the U.S.-Iran relationship is becoming “more professional and productive.” He said that Iran must understand that it cannot develop or procure a nuclear bomb.

An Iranian official, who spoke on the condition of anonymity, said the opening of the Strait will be phased. In the first phase the U.S. will release $12 billion in frozen Iranian assets, minesweeping in the strait will begin, and the U.S. blockade will lift, the Iranian official said.

The Iranian official said the memorandum of understanding does not include a nuclear agreement, just a pledge to negotiate the nuclear issue later. He said an announcement with further details could come Monday.

It’s unclear when the strait is expected to be back in use, although the senior administration official touted the new framework as a means of bringing “relief to American families at the pump.” The official said the U.S. blockade will be “loosened proportionately” as the strait opens, describing the arrangement as “‘trust but verify’ on steroids.”

And Iran’s frozen assets won’t be released until it begins giving up its highly enriched uranium, with the official adding that Iran “gets nothing until they deliver.” The diplomat said frozen assets and sanctions will be dealt with based on Iran’s compliance with the proposal’s other points.

The new framework ensures both sides — the U.S. and its allies and Iran and its proxies — “cease fighting in the region,” the official added, while guaranteeing Israel’s right to “act against imminent threats.”

Speaking Monday, Rubio confirmed that understanding with regard to Israel and Hezbollah in Lebanon. “Israel always has a right to protect itself. Every country in the world does. And so, if Hezbollah is going to launch missiles at them, Israel has every right to respond to that or to prevent that from happening. That’s always been understood. It’s being understood during the ceasefire.”