U.S. and Iran closing in on a 60-day ceasefire extension: FT
On May 16, 2026, a ship remained anchored in the Strait of Hormuz near Larak Island, Iran. Negotiations between the United States and Iran on opening this critical waterway have largely stalled as the countries reject each other’s proposals to end the war that began when the United States and Israel attacked Iran on February 28.
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Mediators think they are nearing an agreement to extend the US ceasefire with Iran for 60 days and create a framework for nuclear talks, according to the Financial Times reported on Saturday, citing people briefed on the negotiations.
According to the FT, the agreement will include the gradual reopening of the Strait of Hormuz, a commitment to discuss Iran’s enriched uranium stockpile, the easing of sanctions and the gradual freezing of Tehran’s overseas assets.
An Iranian foreign ministry spokesman said Tehran was finalizing a “memorandum of understanding” to end the war as a first stage before moving to broader negotiations within 30 to 60 days.
“The agreement seems to be going in the right direction. The American review is currently ongoing,” a diplomat briefed on the talks told the FT.
US President Donald Trump said he “got it” much closerA deal has been reached with Iran, CBS News reported Saturday. He is holding a meeting on Saturday to discuss the draft deal with Arab leaders and could make a decision on Sunday, Axios reported.
A fragile ceasefire has been in place since April 8, punctuated by clashes between the United States and Iran in the Strait of Hormuz, a key chokepoint for global energy trade. The conflict has led to what Gulf countries call the worst global energy crisis in years; High energy prices in the U.S. are fueling rising inflation and leading to expectations that the Federal Reserve may need to raise interest rates.
Pakistani and Qatari negotiators held talks with their Iranian counterparts on Thursday and Friday, while remaining in regular contact with US envoy Steve Witkoff, the FT reported.
Iran’s chief negotiator told his Pakistani counterpart that Iran would not compromise its “legitimate rights” and expressed distrust of the United States, Reuters reported on Saturday.
According to Reuters, Iranian Parliament Speaker Mohammad Baqir Qalibaf said that the Iranian armed forces are rebuilding their capabilities that have been damaged since the conflict began in late February.
The FT noted that Trump’s demand that Iran hand over its enriched uranium and permanently give up any nuclear weapons capability remains a major sticking point.
Trump also demanded that Iran dismantle the Natanz, Fordow and Isfahan nuclear facilities, which the United States bombed after Israel joined the war against Iran last June.
Iran’s foreign ministry acknowledged that the two sides remained “both too far and too close” to the agreement, noting that the United States had put forward “conflicting positions several times.”
The United States is holding off on renewing strikes on Iran this week while “serious negotiations” continue, Trump said Monday.
Gulf states, including Saudi Arabia, Qatar and the UAE, have called on Trump to suspend the military offensive, fearing Iran would retaliate against the region and further damage global energy markets.
This story is developing. Please check back for updates.
