Mediators say US and Iran near 60-day ceasefire extension
Reports from mediators indicate Washington and Tehran are close to finalising a two-month truce, coinciding with positive equity moves during the US-China summit in Beijing.
Mediators report that the United States and Iran are nearing an agreement to extend a ceasefire by 60 days, according to the Financial Times. The proposed terms of the deal involve the gradual reopening of the Strait of Hormuz, a critical global energy chokepoint. The report describes the negotiations as close to completion, though no final deal has been confirmed.
The potential truce emerges against the backdrop of a two-day summit in Beijing between US President Donald Trump and Chinese President Xi Jinping. Leaders at the summit are addressing agendas that include trade, artificial intelligence, and tensions related to Iran. The diplomatic engagement coincided with positive movements in US equity markets on Thursday, with the Dow Jones Industrial Average gaining 0.8%, the S&P 500 rising 0.3%, and the Nasdaq Composite climbing 0.2%.
Investor sentiment was further buoyed by developments in technology trade. Nvidia shares surged more than 2% following news that the United States approved sales of H200 chips to Chinese firms. The approval represents a significant development in the ongoing negotiations between the two economic powers regarding semiconductor exports and artificial intelligence infrastructure.
While the ceasefire extension is attributed to mediators and remains unconfirmed, the prospect of stabilising the Strait of Hormuz carries implications for global supply chains. The specific timeline and conditions for the phased reopening are not detailed in the available reports from the Financial Times. The connection between the US-China summit and the Iran ceasefire is contextual, with the source material not explicitly stating a direct causal link between the two events.
In parallel domestic developments, the United States Justice Department has closed its inquiry into Federal Reserve Chair Jerome Powell regarding cost overruns in renovations of the Fed's Washington headquarters. US Attorney Jeanine Pirro transferred the matter to the Fed's Office of Inspector General. This decision removes a legal obstacle to the confirmation of Kevin Warsh, President Trump’s nominee for head of the central bank.
