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US and Iran 'on verge' of 60-day ceasefire extension, US officials say

US officials say Washington and Tehran are close to extending their ceasefire by 60 days, despite Iranian denials and a fresh exchange of fire. The deal could de-escalate Gulf tensions.

World

US and Iran 'on verge' of 60-day ceasefire extension, US officials say

US officials say Washington and Tehran have reached a tentative agreement to extend their current ceasefire by 60 days, despite conflicting signals from Iran and an exchange of fire between the two sides this morning.

The potential breakthrough came after indirect talks mediated by Gulf states, according to US sources. However, Iranian state news agency IRNA reported that no deal has been finalised or confirmed, casting doubt on the announcement.

US officials say Washington and Tehran are close to extending their ceasefire by 60 days, despite Iranian denials and a fresh exchange of fire. The deal could de-escalate Gulf tensions.

A 60-day extension would mark the longest truce since hostilities escalated last year. The current ceasefire, brokered in April, expires later this week. US officials described the emerging deal as a 'significant de-escalation' but cautioned that 'nothing is signed until it is signed'.

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The morning's exchange of fire – the first reported breach of the truce in weeks – underscored the fragility of the situation. Neither side confirmed casualties, but both accused the other of initiating the clash.

For the UK, which has maintained diplomatic channels with both Washington and Tehran, the extension could reduce the risk of broader conflict in the Gulf, a vital region for British energy imports and naval deployments. Foreign Office officials are said to be monitoring the talks closely.

US officials expressed optimism that a formal announcement could come within days. 'We are closer than we have been in months,' one official told the Financial Times. 'The framework is there, but details still need to be ironed out.'

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The next 48 hours are critical. If confirmed, the extension would freeze military operations and allow humanitarian aid into affected areas. Iran's final position remains unclear, with hardliners in Tehran reportedly resisting any compromise.

What This Means For You - Petrol prices: A prolonged ceasefire could stabilise oil markets, potentially easing pressure on fuel costs at UK pumps. - Travel: The Foreign Office may revise its 'do not travel' advisory for parts of Iran and the Gulf if the truce holds. - Global tensions: Reduced US-Iran hostilities lower the risk of disruptions to shipping lanes, which could protect UK supply chains.

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