The United States and Iran are moving closer to extending their fragile ceasefire by another 60 days, as mediators work on an interim agreement that could pave the way for broader negotiations on Iran’s nuclear programme and regional security. The proposed deal reportedly includes the gradual reopening of the Strait of Hormuz, phased sanctions relief for Tehran, easing restrictions on Iranian ports and discussions over Iran’s stockpile of highly enriched uranium.

Iranian officials said a memorandum of understanding is being finalised to formally end hostilities and create space for wider talks over the next one to two months. Diplomats involved in the discussions said progress is being made, with mediators from Pakistan and Qatar helping to bridge gaps between the two sides.

A key sticking point remains Washington’s demand that Iran surrender its pathway to nuclear weapons capability, including handing over or diluting its enriched uranium and dismantling major nuclear facilities. Iranian leaders have insisted they will not give up what they describe as their sovereign rights, while warning that past shifts in United States positions make the talks fragile.

Regional powers including Saudi Arabia, Qatar and the United Arab Emirates are closely watching the negotiations, fearing that renewed military confrontation could destabilise the Gulf and disrupt global energy supplies. The proposed extension is seen as a critical window to prevent further escalation and allow diplomatic efforts to take hold.