NEW YORK — Wall Street reversed earlier losses on Thursday as reports emerged that the United States and Iran had reached a preliminary agreement aimed at extending the current ceasefire and launching negotiations over Iran’s nuclear program.
The S&P 500 and Nasdaq Composite both climbed to fresh record highs following the news, while the Dow Jones Industrial Average remained relatively flat. The US dollar also weakened as investors welcomed signs of easing tensions in the Middle East.
According to Axios and other outlets citing US officials, negotiators from both countries reached an agreement on a 60-day memorandum of understanding designed to extend the ceasefire and begin talks surrounding Iran’s nuclear program. However, President Donald Trump had not yet granted final approval for the agreement.
“The president relayed to the mediators that he wants a couple of days to think about it,” a US official said, according to reports.
The proposed memorandum would reportedly state that shipping through the Strait of Hormuz would remain “unrestricted,” with no tolls or interference. Under the draft agreement, Iran would remove all mines from the strait within 30 days, while the US naval blockade would be lifted gradually alongside the restoration of commercial maritime traffic.
The agreement would also include an Iranian commitment not to pursue nuclear weapons. Negotiations during the 60-day period would focus on the handling of Iran’s highly enriched uranium and restrictions on enrichment activities.
Financial markets reacted positively to the developments as investors viewed the proposed agreement as potentially reducing the risk of broader regional disruption. The proposed ceasefire extension and negotiations around the Strait of Hormuz are being closely monitored by investors, given the region’s importance to global oil shipments and energy markets.
Iranian officials have not yet formally confirmed the details of the agreement. This report will be updated as more information becomes available.