A ship remains anchored in the Strait of Hormuz near Larak Island, Iran, on May 16, 2026. Talks between the US and Iran on opening the vital waterway have largely stalled as the countries have rejected each other’s proposals to end the war that began after the US and Israel attacked Iran on February 28.
Majid Saeedi Getty Images News | getty images
Mediators believe they are close to an agreement to extend the US ceasefire with Iran by 60 days and establish a framework for nuclear talks, Financial Times informed Information about the conversation was given quoting people on Saturday.
The agreement would include the gradual reopening of the Strait of Hormuz, a commitment to discuss Iran’s enriched uranium reserves, the easing of sanctions and the phasing out of Tehran’s foreign assets, the FT reports.
An Iranian Foreign Ministry spokesman said Tehran was finalizing a “memorandum of understanding” to end the war as a first step, before moving into broader talks within 30 to 60 days.
“The deal is going in the right direction. It is now up to the Americans for review,” a diplomat briefed on the talks told the FT.
US President Donald Trump said he was “getting very close” to a deal with Iran, CBS News reported Saturday.
He is calling on Saturday to discuss the draft agreement with Arab leaders and could make a decision on Sunday, Axios informed.
A fragile ceasefire has been in place since April 8 due to clashes between the US and Iran over the Strait of Hormuz, a vital route for global energy trade. The conflict has led to what Gulf countries have called the worst global energy crisis in decades, with high energy prices in the US fueling rising inflation and expectations that the Federal Reserve may need to raise interest rates.
Pakistani and Qatari negotiators held talks with Iranian counterparts on Thursday and Friday, while the US envoy remained in regular contact with Steve Witkoff, the FT reported.
Iran’s top negotiator told his Pakistani counterpart that Iran will not compromise on its “legitimate rights” and expressed distrust of the US, Reuters reported on Saturday.
Iran’s parliament speaker Mohammad Baqer Qalibaf said Iran’s armed forces have rebuilt capabilities damaged since the beginning of the conflict in late February, according to Reuters.
A major sticking point remains Trump’s demands that Iran surrender its enriched uranium and permanently abandon any nuclear weapons capability, the FT said.
Trump has also demanded Iran destroy the Natanz, Fordow and Isfahan nuclear sites, which were bombed by the US after Israel joined the war against Iran last June.
Iran’s Foreign Ministry acknowledged that the two sides remain “far and very close” to an agreement, noting that the US has put forward “many times conflicting positions”.
Trump said Monday that the United States has refrained from striking Iran again this week while “serious conversations” are underway.
Gulf countries including Saudi Arabia, Qatar and the UAE have urged Trump to suspend military strikes, fearing Iranian retaliation against the region and further damage to global energy markets.
This story is developing. Please check back for updates.