U.S. and Iran Close In on 60-Day Ceasefire Extension — But It's Not Done Yet

Here's where things stand: The U.S. and Iran have been circling a deal that would pause their war for another 60 days — and as of late May, negotiators on both sides say they're very close. But "close" isn't "done," and that gap matters a lot.

Vice President JD Vance said that Iran and the U.S. were "very close," but "not there yet," to agreeing on a memorandum of understanding — essentially a written framework — that would extend the current ceasefire for two more months, reopen the Strait of Hormuz, and spark deeper talks on contentious issues including Iran's nuclear program.

So what's actually in this potential deal? The draft proposal includes a 60-day ceasefire extension, a commitment to ending all military operations on every front including Lebanon, and an affirmation from Iran that it won't develop nuclear weapons and will dispose of its enriched uranium stockpile. That last part — the enriched uranium — is a big one. Iran has 440.9 kilograms (about 972 pounds) of uranium enriched up to 60% purity, a short technical step from the weapons-grade level of 90%.

But here's the catch: the U.S. and Iran have reached a tentative agreement, but President Trump has yet to approve it. Trump has also been sending mixed signals — publicly saying talks are going well while simultaneously threatening to go back to war if no deal is reached. Trump said negotiations with Iran were "proceeding nicely," but added a warning that if no agreement was reached, the U.S. would be "back to the Battlefront and shooting, but bigger and stronger than ever before."

Iran's side isn't exactly radiating confidence either. Iran said Tehran and Washington had reached understandings on many issues, with its foreign ministry spokesman saying "it is correct to say that we have reached a conclusion on a large portion of the issues under discussion" — but that "to say this means the signing of an agreement is imminent — no one can make such a claim," while also accusing Washington of constantly shifting its position.

An Iranian negotiator even posted on X that his country was obtaining "concessions not through talks, but through missiles" — and that Tehran has "absolutely no trust in guarantees or words — only actions matter." Not exactly the tone of a side eager to sign on the dotted line.

Why does this matter to you personally? Two words: gas prices. Oil prices have come down amid hopes that the U.S. and Iran will reach a deal to reopen the Strait of Hormuz, which accounts for about one-fifth of the world's oil supplies. Gas prices in the United States reached an average of $4.35 a gallon at the time of reporting — down from recent highs, but still painfully elevated. Oil and gasoline futures rebounded as new fighting underscored the fragile nature of the ceasefire, and the situation remains volatile with markets on a roller coaster ride.

And it's not just gas. The closure of the Strait of Hormuz has also squeezed fertilizer supplies worldwide, meaning grocery prices could feel the squeeze too — especially in the months ahead.

There's also the Lebanon wildcard. Israel and Hezbollah's continued fighting in Lebanon, despite a U.S.-brokered ceasefire between the Israeli and Lebanese governments, has been one of the complications for negotiators — because Iran insists that any peace deal include a halt to fighting on all fronts, including Lebanon.

Bottom line: a deal is closer than it's ever been, but both sides are still haggling over critical details, the ceasefire has already seen violations, and Trump hasn't officially signed off. Until ink hits paper, everything is still up in the air — and so are your energy bills.