The United States and Iran have reportedly reached a tentative agreement to extend their ceasefire by 60 days and ease restrictions on shipping through the Strait of Hormuz, in what could be a major step toward easing months of conflict.

Sources familiar with the talks said the deal would allow freer maritime traffic through the strategic waterway while negotiations continue on Iran’s nuclear programme, sanctions relief, and wider security issues. However, the agreement has not yet been approved by U.S. President Donald Trump, while Iranian state media said it is still not finalised.

If approved, the arrangement would mark the most significant breakthrough since fighting began on February 28 and has already impacted global energy markets.

The proposal reportedly includes partial U.S. sanctions relief, reopening of Iranian ports, and unrestricted shipping through the Strait of Hormuz, a key global oil route.

Despite diplomatic progress, tensions remain high after fresh military exchanges. U.S. Central Command said it shot down Iranian drones and struck a ground control site near Bandar Abbas, while Kuwait intercepted a ballistic missile.

Iran’s IRGC claimed it targeted a U.S. base in response, warning of further retaliation. The U.S. denied Iranian claims that an American aircraft was shot down.

The conflict has intensified regional instability, with Israel also continuing strikes on Hezbollah targets in Lebanon.

Negotiations are expected to continue, with key discussions still focused on sanctions, nuclear restrictions, and regional security guarantees.