Washington and Tehran signed a memorandum of understanding on Wednesday extending the fragile ceasefire for another 60 days, with both sides agreeing to keep the Strait of Hormuz open as negotiations on a permanent nuclear deal enter what officials described as their most critical phase since the war began in late February.
The agreement, brokered by Qatar and Oman with indirect US-Iran talks hosted in Doha, came after marathon sessions between US Special Envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi. A formal announcement was expected later Wednesday pending final sign-off from President Donald Trump, who told reporters at the White House he was “not satisfied yet” but acknowledged “progress has been made.”
The MoU, confirmed by two officials briefed on the talks, freezes current military positions along the Iranian coastline and commits both sides to refraining from strikes on energy infrastructure. Most critically, the Hormuz shipping corridor — which carries roughly 21 million barrels of oil per day — will remain open for the duration of the 60-day window.
“This is not peace,” one senior Arab diplomat told Media Hook on condition of anonymity. “This is breathing room. The hard part comes next.”
Under the terms being circulated among Gulf allies, Iran would suspend uranium enrichment above 3.67 percent in exchange for a phased lifting of oil sanctions and the release of approximately $10 billion in frozen Iranian assets held in Oman and Iraq. A full nuclear deal would be the subject of separate negotiations during the ceasefire window.
Israel was not party to the ceasefire framework and made clear it would continue military operations against Hezbollah in Lebanon and Hamas in Gaza. The Israeli military struck the Lebanese capital Beirut on Wednesday — its first direct hit on the city centre since a ceasefire between Israel and Hezbollah was agreed earlier this year. The IDF said it targeted a “Hezbollah command centre.”
Prime Minister Benjamin Netanyahu said Israel would not be bound by any US-Iran understanding. “Israel retains full freedom of action,” his office said in a statement. Separately, Israel killed Mohammed Odeh, the new head of Hamas’s military wing, in an airstrike on Gaza City. Odeh’s wife and two children also died in the strike, Hamas confirmed.
Despite the US-Iran ceasefire, Israeli bombardment of Lebanon has intensified. The IDF issued evacuation orders covering 17 percent of Lebanese territory in a single day — the largest single-day expansion of Israeli operation zones since the conflict began. Aid agencies warned of an “absolute catastrophe” as southern Lebanon’s population flees under bombardment.
The International Committee of the Red Cross said its teams were unable to reach several struck areas due to ongoing fighting. At least 19 people were killed in Lebanon on Wednesday alone, according to the Lebanese Health Ministry.
The Treasury Department’s Office of Foreign Assets Control warned Oman on Wednesday that it would “aggressively target” any actors facilitating tolls or obstruction in the Strait of Hormuz. The warning, first reported by the Financial Times, signals Washington’s willingness to apply secondary sanctions on Gulf states seen as helping Iran evade restrictions on oil exports.
China, which depends on Hormuz for roughly half its oil imports, has pressed Iran to keep the waterway open. Chinese Vice Premier Ding Xuexiang raised the issue directly with Iranian officials in a phone call Tuesday, according to the Xinhua state news agency.
A ministerial-level meeting is expected in Geneva next week under UN auspices to launch formal nuclear negotiations. The UN Security Council has been briefed on the MoU. Secretary of State Marco Rubio said a final deal was still possible “in the coming weeks” but warned that any Iranian violation of enrichment limits would collapse the talks.
Markets reacted cautiously. Brent crude fell 1.4 percent to $92.80 per barrel on news of the extension before recovering most losses. Asian equity markets opened higher on Thursday following the announcement.