The United States and Iran are "very close" to agreeing a 60-day extension of their ceasefire, Vice-President JD Vance has said, as global oil prices fell sharply on reports of a breakthrough.
US officials earlier told the BBC that the framework of a ceasefire extension deal had been agreed, pending the approval of President Donald Trump and Iran's leadership. The tentative agreement, reached on Thursday, would extend the three-month-old war's ceasefire by 60 days and start a new round of talks on Iran's nuclear programme, according to reports from The Mirror and Channel 4 News.
“The US and Iran are 'very close' to a 60-day ceasefire extension deal, according to Vice-President JD Vance, with oil prices falling on the news. The framework has been agreed pending approval from President Trump and Iran's leadership, though exchanges of fire continue.”
The development comes despite an exchange of fire between the two countries this morning, underscoring the fragility of the truce. The Financial Times reported that the Trump administration's hopes that an agreement is imminent come after both sides exchanged fire.
Speaking to reporters, Vice-President Vance said: "We're very close but we're not there yet." He added that the framework had been agreed but still required final approvals from President Trump and Iran's leadership.
The 60-day extension would provide breathing space for negotiations on Iran's nuclear programme, which the US and its allies have long sought to curb. The current ceasefire, which halted active hostilities, had been under strain in recent weeks.
The potential deal has already had an impact on global markets. Oil prices fell on Thursday following the reports, with Brent crude dropping more than 2% in afternoon trading. The BBC Business report noted that the price fall was driven by the news of a possible extended ceasefire, subject to Trump's approval.
For the UK, a reduction in oil prices could bring relief to motorists and businesses. The price of petrol at UK forecourts may fall if the trend continues, easing some of the cost-of-living pressures on households. The UK imports a significant portion of its oil from the Middle East, and any disruption to shipping through the Strait of Hormuz—a key chokepoint for crude tankers—had caused volatility in global markets. The Mirror report highlighted that the world awaits Trump's decision on opening the Strait of Hormuz, a crucial route for oil shipments.
Experts and officials have been cautious about the deal's final shape. The Financial Times noted that the agreement is not yet final and could still collapse. The BBC quoted US officials expressing optimism but acknowledging that both sides need to approve the framework.
What happens next? The deal must now be approved by President Trump and Iran's leadership. If approved, a new round of talks on Iran's nuclear programme is expected to begin within the 60-day ceasefire period. The extension would provide a window for diplomatic progress and potentially de-escalate the conflict.
What This Means For You
For UK readers, the prospect of a 60-day ceasefire and a de-escalation in tensions in the Middle East could have practical effects:
Motorists: Oil prices have already fallen on the news. If the ceasefire holds and oil continues to slide, petrol prices at UK pumps could see a modest decline in the coming weeks. The average price of petrol in the UK has remained high due to regional instability.
Households: Lower oil prices can reduce inflation, as energy costs feed into the cost of goods and services. Businesses reliant on fuel for transport and production could also benefit from reduced input costs.
Pensioners and workers: Any easing of inflationary pressure could preserve household budgets, although the situation remains fragile. A collapse in talks could quickly reverse market gains.
Investors: The oil price volatility has created uncertainty in markets. The three-month-old war had pushed prices higher; a sustained ceasefire could bring stability.
Overall, while the deal is not yet final, the direction is positive for those affected by energy costs. However, the history of US-Iran tensions means nothing is guaranteed until both leaders sign off.