US and Iran Signal Possible Memorandum on Strait of Hormuz and Regional Ceasefire

The United States and Iran are reportedly nearing a preliminary memorandum of understanding aimed at de-escalating regional tensions. Secretary of State Marco Rubio and President Donald Trump have signaled that an agreement to reopen the Strait of Hormuz, a critical global oil chokepoint, could be announced as early as Monday. President Trump described the deal as 'largely negotiated' but emphasized he is not rushing the process. The proposed framework is structured as a two-phase agreement, beginning with a 60-day ceasefire extension and the stabilization of maritime trade routes. Tehran, however, has maintained a more cautious public stance. Iranian Foreign Ministry spokesman Esmaeil Baqaei stated that a final signing is not imminent, highlighting that the current draft does not include immediate concessions regarding Iran's nuclear program. While the draft reportedly contains a commitment from Iran to never develop nuclear weapons and a plan for disposing of enriched uranium, Iranian officials are pushing for more substantial sanctions relief and access to approximately $100 billion in frozen assets. The diplomatic movement has significant regional implications, as the draft seeks to freeze military operations across multiple fronts, including those involving proxy forces in Lebanon. Meanwhile, Israeli officials have expressed concern that the emerging terms may be too favorable to Tehran, particularly regarding the lack of long-term limits on uranium enrichment and missile development. As of May 25, 2026, it remains unclear if the parties will meet the U.S.-projected Monday timeline or if outstanding financial and nuclear disputes will delay a final signing.