Emerging
May 28, 20262
50%
US and Iran Agree on Draft Nuclear Ceasefire Memorandum with Strait of Hormuz Provisions
US and Iranian negotiators have reached agreement on a draft 60-day memorandum extending their ceasefire and addressing nuclear negotiations, Strait of Hormuz access, and mutual sanctions and military measures. The agreement awaits final approval from President Trump and Iranian leadership.
Quick Facts
Who
US negotiators
What
Agreed on draft memorandum of understanding
When
May 26, 2026 (draft finalized)
Where
Strait of Hormuz
- Agreed on draft memorandum of understanding
- 60-day ceasefire extension
- Reopening of Strait of Hormuz for unrestricted navigation
- Iran to negotiate on uranium enrichment
- Iran to dispose of enriched uranium stockpile
US and Iranian negotiators have agreed on a draft memorandum of understanding aimed at extending their ceasefire and launching formal negotiations on Iran's nuclear program, according to reporting on May 28. The draft agreement was finalized on May 26 and now awaits approval from President Donald Trump and Iranian senior leadership before implementation. The proposed 60-day memorandum would establish terms for both sides to address longstanding disputes over Iran's nuclear activities and regional maritime access.
Under the draft agreement, Iran has committed to negotiate on uranium enrichment and dispose of its current stockpile of enriched uranium. The memorandum also requires Iran to remove all mines from the Strait of Hormuz within 30 days, with the waterway to be reopened for unrestricted navigation. In reciprocal commitments, the United States has agreed to discuss sanctions relief and the release of frozen Iranian funds. The US naval blockade on Iran will be lifted in proportion to the restoration of commercial shipping through the Strait of Hormuz.
Both countries have indicated they require approval from their respective top leadership before the agreement can proceed to signature. US officials stated that Iranian representatives confirmed they had obtained necessary approvals from their leadership and were prepared to sign the agreement, though Iran has not publicly confirmed this claim. President Trump's final approval remains the critical pending step before the memorandum can be implemented.
Why This Matters
This agreement represents a significant diplomatic breakthrough that could reshape Middle East geopolitics and global energy markets. The reopening of the Strait of Hormuz—through which roughly one-third of world seaborne oil trade passes—has immediate implications for oil prices, shipping costs, and international commerce. For investors and businesses, sanctions relief and unfrozen Iranian funds could unlock substantial trade opportunities, while the nuclear negotiation framework may reduce regional military tensions and geopolitical risk premiums affecting global markets.
Timeline & Sources
May 26, 2026
WireDraft memorandum of understanding finalized by US and Iranian negotiators
May 28, 2026
WireAgreement reported by Axios; pending approval from Trump and Iranian leadership