DEK: Reports suggest progress toward a cease-fire agreement between the US and Iran, but President Trump still needs to give final approval. CATEGORY: Mercado Financeiro & Forex KEY_FACTS: - US and Iran have tentatively agreed to a 60-day ceasefire extension. - The deal would allow Hormuz traffic to resume while nuclear talks continue. - President Trump still needs to approve the agreement.
A possible ceasefire agreement between the US and Iran has been reported, with multiple sources suggesting progress toward a deal. According to Reuters, negotiators have reached an agreement on a 60-day extension of the cease-fire framework, which would allow Hormuz traffic to resume while nuclear talks continue. However, President Trump still needs to give final approval.
The agreement, if approved, would be implemented in two phases, beginning with the signing of a memorandum of understanding (MOU). Pakistan is expected to witness the signing ceremony. The deal comes after both sides exchanged fire, with reports that Iran targeted four American ships that attempted to cross the Straits of Hormuz.
The developments have led to sharp two-way price swings in West Texas Intermediate (WTI) crude oil, with prices hitting an intraday high of $91.27 before trading little changed around $88 per barrel. The Trump administration has expressed hopes that an agreement is imminent.
Despite the reports of a tentative agreement, President Trump has stated that the US holds all the cards and that Iran has been defeated "militarily." The situation remains uncertain, with the deal still requiring Trump's approval and Iran not confirming the text as finalised.