US-Iran Truce Extension Deal Awaits Trump Signoff; Oil Edges Lower

The U.S. and Iran tentatively agreed to a 60-day ceasefire extension and further nuclear talks on May 28, 2026, pending President Donald Trump’s approval, a person familiar said. The development raised hopes for ending a three-month conflict that has blocked crude shipments through the Strait of Hormuz. U.S. crude futures fell 0.4% to about $88.60 a barrel early Friday, while Asian equities pointed higher. Vice President JD Vance said progress was made, and the sides were negotiating wording on Iran’s nuclear program. Axios reported the memorandum would guarantee unrestricted Hormuz shipping and require Iran to remove mines within 30 days. The fragile truce since early April has been marred by intermittent strikes. The strait’s effective closure since late February has disrupted about one-fifth of global oil and LNG supplies, fueling inflation. Treasury Secretary Scott Bessent reiterated Trump’s red lines—reopening the waterway, Iran surrendering highly enriched uranium, and ending its nuclear program—as prerequisites for a final pact.