US and Iran Agree to Extend Truce for 60 Days, Pending Trump's Approval, After Exchange of Strikes

By Jonathan Landay, Steve Holland and Jana Choukeir

WASHINGTON/DUBAI, May 28 (Reuters) — The United States and Iran struck a provisional deal on Thursday to extend their fragile ceasefire for 60 days, four sources familiar with the matter said, after a fresh round of tit-for-tat attacks threatened to derail diplomatic efforts. The memorandum of understanding now awaits approval from President Donald Trump, who has repeatedly voiced skepticism about the negotiations.

The extension, first reported by Axios, would set the stage for discussions on how to handle Iran’s growing stockpile of highly enriched uranium — one of the most contentious issues in the broader standoff. The plan also includes steps to de-escalate tensions around the Strait of Hormuz, a strategic waterway through which roughly one-fifth of the world’s oil and liquefied natural gas flows.

The White House declined to comment on the details of the agreement. The prospect of a renewed diplomatic push helped push oil prices lower in afternoon trading, as traders bet on a possible reopening of the strait that has been effectively closed since late February.

The three-month-old conflict, triggered by U.S. and Israeli strikes on Iran on February 28, has killed thousands and drawn in multiple countries across the Middle East. The initial ceasefire, brokered in early April, was always tenuous, and the latest violence — including an Iranian ballistic missile strike on a U.S. base in Kuwait and U.S. drone interceptions near Bandar Abbas — underscored the fragility of the talks.

“U.S. Central Command said it shot down five Iranian attack drones and struck a ground control station in the port city of Bandar Abbas that was preparing to launch a sixth,” the military said in a statement. Kuwaiti forces intercepted a ballistic missile aimed at the country, which hosts a major American base. A U.S. official, speaking on condition of anonymity, described the strikes as “measured, purely defensive and intended to maintain the ceasefire.”

The Islamic Revolutionary Guard Corps confirmed the attack on the U.S. base and warned that any repeat would draw a “more decisive response,” according to Iran’s Tasnim news agency. Kuwait condemned the escalation and demanded an immediate halt.

The violence erupted during the Muslim holiday of Eid al-Adha, celebrated across a region already reeling from the conflict. Mediator Pakistan said its foreign minister, Ishaq Dar, would meet U.S. Secretary of State Marco Rubio in Washington on Friday, though the significance of the visit remained unclear.

In a related front, Israel said it had begun striking infrastructure belonging to Iran-backed Hezbollah in southern Lebanon, expanding its campaign beyond Gaza and drawing in another player that Iran insists must be included in any comprehensive peace deal. The Lebanese army reported one soldier killed in an Israeli strike; Israel said air raid sirens sounded in the north.

The Trump administration also issued a pointed warning to Oman on Thursday. Treasury Secretary Scott Bessent said the U.S. would “aggressively target any actors involved — directly or indirectly — in facilitating tolls for the Strait of Hormuz,” and that any willing partners would be penalized. Trump himself appeared to threaten Oman, a long-time U.S. ally, saying: “It’s international waters, and Oman will behave just like everybody else or we’ll have to blow them up. They understand that, they’ll be fine.”

Oman, which has not publicly endorsed joint control of the strait with Iran, said it had discussed freedom of navigation with Tehran. Iran expressed solidarity with Oman following what it called “U.S. officials’ threats.”

Analysts say the 60-day extension offers a narrow window for both sides to test whether a permanent ceasefire is achievable. Trump has said the end of the war is close but told reporters at a cabinet meeting on Wednesday he was “not yet satisfied by the negotiations” and that the U.S. was not discussing the easing of sanctions — a central demand from Tehran. With oil markets, regional stability and the fate of the Hormuz waterway hanging in the balance, the next two months could prove decisive.

(Reporting by Reuters’ bureaux; Writing by Lincoln Feast, Philippa Fletcher and Keith Weir; Editing by Hugh Lawson, Jon Boyle and Toby Chopra)