A ship remains anchored in the Strait of Hormuz near Larak Island, Iran, on May 16, 2026. Negotiations between the United States and Iran over the opening of the vital waterway have largely stalled as the two sides mutually reject proposals to end the war that began when the United States and Israel attacked Iran on February 28.
Majid Saidi | Getty Images News | Getty Images
The Financial Times reported on Saturday that mediators believe they are close to a deal that would extend the ceasefire between the United States and Iran for 60 days and establish a framework for nuclear negotiations, citing people briefed on the negotiations.
The deal includes the gradual reopening of the Strait of Hormuz, a commitment to discuss Iran’s enriched uranium stockpile, sanctions relief and a gradual unfreezing of Iran’s overseas assets, FT reported.
Iran’s Foreign Ministry spokesperson said Tehran is finalizing a “memorandum of understanding” to end the war as a first step before moving to broader talks within 30 to 60 days.
“The deal seems to be moving in the right direction. It is currently under consideration on the US side,” a diplomat briefed on the talks told the FT.
US President Donald Trump said he is “very close” to reaching a deal with Iran, CBS News reported on Saturday.
He held a conference call with Arab leaders on Saturday to discuss the draft agreement and could make a decision on Sunday, Axios reported.
There has been a fragile ceasefire since April 8, punctuated by skirmishes between the United States and Iran over the Strait of Hormuz, a key transit point for global energy trade. The conflict has sparked what Gulf countries call the worst global energy crisis in decades, fueling expectations that soaring U.S. energy prices could lead to higher inflation and the need for the Federal Reserve to raise interest rates.
Pakistani and Qatari negotiators met with their Iranian counterparts on Thursday and Friday, in regular contact with US special envoy Steve Witkoff, FT reported.
Iran’s top negotiator told his Pakistani counterpart that Iran would not violate their “legitimate rights” and expressed distrust of the United States, Reuters reported on Saturday.
According to Reuters, Iranian Parliament Speaker Mohammad Baqer Qalibaf said Iran’s armed forces had rebuilt capabilities that had been damaged since the start of the conflict in late February.
The FT said the major sticking point remained President Trump’s demand that Iran hand over enriched uranium and permanently give up its nuclear weapons capabilities.
President Trump also demanded that Iran dismantle its nuclear facilities in Natanz, Fordow and Isfahan, which the United States bombed after joining Israel’s war against Iran last June.
Iran’s Foreign Ministry noted that the United States had “repeatedly come up with opposing positions” and acknowledged that the two countries remained “very far and very close” to an agreement.
President Trump said on Monday that the United States refrained from any new attacks on Iran this week because “serious negotiations” were underway.
Gulf states including Saudi Arabia, Qatar and the UAE have called on President Trump to halt military strikes, fearing Iranian retaliation against the region and further damage to global energy markets.
This story is developing. Please check back for the latest information.
