US and Iran near 60-day ceasefire extension with nuclear framework

The United States and Iran are nearing a formal agreement to extend their current ceasefire by 60 days, according to a report by the Financial Times. The proposed extension, which includes a framework addressing nuclear issues, marks a significant diplomatic development following months of tension and intermittent conflict in the region.

The current truce has been in effect since 8 April, though it has been characterised by a fragile stability punctuated by ongoing skirmishes. Both nations have been actively competing for influence over the Strait of Hormuz, a critical global energy chokepoint that remains central to the negotiations.

Mediators indicate that the terms of the potential deal involve the gradual reopening of the Strait of Hormuz, aiming to stabilise energy flows and reduce regional volatility. The Financial Times describes the negotiations as being close to completion, suggesting that a final accord is imminent, although no official confirmation has been released.

This diplomatic progress coincides with a high-level summit in Beijing between US President Donald Trump and Chinese President Xi Jinping. The two-day meeting is focusing on broader geopolitical issues, including trade relations, artificial intelligence infrastructure, and the escalating tensions involving Iran.

Market sentiment has responded positively to the broader geopolitical landscape. US stock indices, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, have all posted gains. Additionally, Nvidia shares surged more than 2% after the US approved the sale of H200 chips to Chinese firms, signalling a thaw in semiconductor export restrictions.

Despite the positive market indicators and diplomatic momentum, the ceasefire extension remains unconfirmed. The specific details of the nuclear framework have not been fully disclosed, and the long-term durability of the truce remains uncertain given the history of skirmishes since April.