US, Iran Near Agreement to Extend Ceasefire by 60 Days

The US and Iran are nearing an agreement to extend their ceasefire by 60 days, according to a report. Markets are focused on the prospect of easing tensions in the Middle East and the resulting impact on volatility in international oil prices.

Walter Bloomberg reported on May 23 that mediators said the US and Iran were close to a plan to extend the ceasefire by 60 days. The two sides are also discussing a framework for additional talks alongside the extension.

The proposal includes restoring normal shipping through the Strait of Hormuz and phased sanctions relief, the report said. The US is pressing for limits on Iran's nuclear program and action on highly enriched uranium.

Mediators have continued efforts to broker talks between Washington and Tehran. Differences remain over limits on uranium enrichment and issues related to nuclear facilities.

Markets are assessing whether an extension of the ceasefire could affect global financial markets, including international oil prices and dollar flows. A final agreement remains uncertain as gaps persist over key issues.