Details of a potential agreement between the United States and Iran are emerging, with a 60-day ceasefire extension and the reopening of the Strait of Hormuz among the terms believed to be included, Axios reported on May 24.

US President Donald Trump said on May 23 that a deal with Iran had been "largely negotiated" and confirmed the Strait of Hormuz would be part of any agreement, without providing further detail.

US Secretary of State Marco Rubio, speaking at a press conference in New Delhi on May 24, said "significant" but "not final" progress had been made and suggested a further announcement from Trump could come later in the day.

"There's been some progress done, some progress made, even as I speak to you now, there's some work being done. There is a chance that, whether it's later today, tomorrow, or in a couple of days, we may have something to say," Rubio said.

No official agreement has been confirmed by either side.

Iran's Tasnim news agency, citing informed sources, reported that the Strait of Hormuz would "not return" to its pre-war status under the draft terms, but that ship traffic through the waterway would return to previous levels. The strait's legal regime has been a central sticking point, with Iran insisting it will not revert to the arrangements in place before the conflict began in late February.

Iranian sources told Tasnim on May 24 that disagreements over one or two clauses of the potential preliminary memorandum of understanding were continuing and that US obstruction had prevented finalisation. Iran also reiterated that no deal was possible without the release of a defined portion of its frozen overseas assets as a first step, rejecting US attempts to tie asset release to a final nuclear agreement.

Iranian sources denied reports in Western and regional media that Tehran had committed to removing enriched uranium from the country or suspending nuclear activities for 10 to 20 years.

Iran has maintained throughout the negotiations that nuclear issues would only be addressed after a war-ending agreement was in place and the US had taken specified practical steps.

The potential deal follows talks between Pakistani army chief Field Marshal Asim Munir and Iranian President Masoud Pezeshkian, Foreign Minister Abbas Araghchi and parliament speaker Mohammad Bagher Ghalibaf in Tehran on May 23, which Pakistan's military described as "highly productive."

The Strait of Hormuz, through which roughly 20% of global oil and gas shipments passed before the conflict, has been subject to disruption since late February, with Iranian coordination requirements for vessel transits sharply reducing traffic through the chokepoint. Brent crude was trading above $104 a barrel as investors monitored developments in the talks.

The conflict between Iran, Israel and the United States began on February 28 and a ceasefire was agreed on April 8, with negotiations over a permanent settlement continuing through Pakistani and Omani mediation since then.