The US-Iran agreement, which could be signed soon, calls for a 60-day ceasefire extension, Axios reported citing a US official.

During this period, the Strait of Hormuz will be reopened, Iran will be able to freely sell oil, and negotiations will be held to limit Iran’s nuclear program, the publication said.

Previously, US President Donald Trump claimed that the deal with Iran was largely finalised, and that the final aspects and details were being discussed and would be announced soon.

The US is ready to discuss the unfreezing of Iran’s frozen assets within 60 days if a final deal is adopted, Axios added.

On 28 February, the United States and Israel launched strikes on targets in Iran, causing damage and civilian casualties. Iran responded by striking Israeli territory and US military facilities in the Middle East. On 7 April, Washington and Tehran announced a ceasefire.

The subsequent talks in Islamabad ended without result, with no announcement of a resumption of hostilities, but the US began a blockade of Iranian ports.

The escalation surrounding Iran has led to the de facto blockade of the Strait of Hormuz, a key route for oil and liquefied natural gas supplies from the Persian Gulf to global markets, and has also impacted oil exports and production. Due to the blockage, most countries around the world are seeing rising prices for fuel and industrial products.