New Deal, Old Fineprint: Iran Oil Sale, Hormuz Part Of Likely 60-Day US Truce

The sale of Iranian oil, the reopening of Strait of Hormuz and discussion on curbing Iran's nuclear program will remain the key constituents of a likely 60-day truce deal that Iran and the United States are close to reaching, per a report.

Axios reported that during the 60-day ceasefire, the critical marine chokepoint Strait of Hormuz will open without tolls and Iran will clear the mines it deployed in the waterway to allow the free and safe passage of ships. This will be a welcome measure as a halt of movement in the waterway severely hits global energy markets.

On Washington's part, the US would lift its blockade on Iranian ports and waive some sanctions to allow unhindered sale of Iranian oil. Further, the US will be expected to lift sanctions on and unfreeze Iranian funds during the 60-day period, per Axios.

The draft includes a key point that has been at the centre of US-Iran tensions and failed talks since the February 28 conflict broke out - Iran's nuclear programme. Per the Axios report, the agreement seeks commitment that Iran will not pursue nuclear weapons, suspend uranium enrichment and remove its stockpile of highly-enriched uranium.

US Secretary of State Marco Rubio, while on a four-day visit to India, said an announcement was possible later Sunday on a deal with Iran. "I do think perhaps there is the possibility that in the next few hours the world will get some good news," Rubio told reporters in New Delhi.

His statement comes hours after US President Donald Trump said a proposal to end the Middle East war, including the reopening of Hormuz, is "largely negotiated". He emphasised that the deal was still "subject to finalisation", while the New York Times reported that the two sides would only address thorny issues about Iran's nuclear program after an initial pact was reached. The report said the current proposal does not define how exactly Tehran would relinquish its stocks of the fuel crucial for building nuclear weapons, a scenario that Washington has long said it will not accept in Iran.

Iranian officials have stressed that gaps between the sides persist and the dispute over the nuclear program would not be part of initial negotiations. Foreign ministry spokesman Esmaeil Baqaei earlier noted "a trend towards rapprochement" with Washington but said "it does not necessarily mean that we and the United States will reach an agreement on the important issues". "Our intention was first to draft a memorandum of understanding, a kind of framework agreement," he said on state television.

Pakistan, which mediated historic face-to-face negotiations between US and Iranian delegations in April, hoped to host another round of talks "very soon," Prime Minister Shehbaz Sharif said.

While a delicate ceasefire remains in place in the Middle East, both sides have traded threats to take action against the other should there be an escalation. Iran's chief negotiator Mohammad Bagher Ghalibaf had warned earlier that Washington would face a tough response if it resumed hostilities, after US media reports raised the prospect of new strikes. "Our armed forces have rebuilt themselves during the ceasefire period in such a way that if Trump commits another act of folly and restarts the war, it will certainly be more crushing and bitter for the United States than on the first day of the war," Ghalibaf said.