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WASHINGTON/CAIRO, May 28 (Reuters) – The United States and Iran reached an agreement on Thursday to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, sources told Reuters, though U.S. President Donald Trump has yet to approve it and Iranian state media said it had not been finalized.
According to four sources familiar with the matter, the agreement would extend the truce for another 60 days and allow traffic to flow through the strategic waterway while negotiators tackle difficult issues such as Iran’s nuclear program.
If approved by leadership in Washington and Tehran, it would amount to the biggest step towards peace since the conflict began on February 28. News of the possible agreement came after a round of tit-for-tat attacks between the two countries, the latest such incident since the ceasefire took effect in early April.
Trump has not yet approved the deal, the sources said. The White House declined to comment, and Iran has yet to comment on news of the proposed deal, which was first reported by Axios.
Iran’s Tasnim news agency, citing a source close to the negotiating team, said the text of the agreement had not been finalized or confirmed.
The deal would specify unrestricted shipping through the strait and would require the U.S. to also lift its blockade of Iranian ports. The U.S. would also lift some sanctions on Iranian oil sales.
The reports prompted oil prices to fall on hopes of a potential reopening of the Strait of Hormuz, a key transit route for roughly a fifth of the world’s oil and liquefied natural gas supply.
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