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US officials said a draft agreement of a ceasefire extension is with Trump for approval
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Iran has condemned Donald Trump’s surprise threat to “blow up” US ally Oman, accusing Washington of “bullying” as the two sides exchanged fresh attacks.
The US president on Wednesday threatened Oman if it didn’t agree to his demands around control of the Strait of Hormuz, after Iranian state TV said it had obtained a draft of an agreement to restore commercial shipping with Iran and Oman jointly managing traffic.
Iran’s foreign ministry spokesperson Esmaeil Baghaei responded with indignation, warning the comments represented “another dangerous sign of the normalisation of lawlessness and bullying in international relations”.
It comes as US officials said a 60-day deal to extend the shaky ceasefire between the United States and Iran and reopen the Strait of Hormuz is now with President Trump for approval.
The officials, who spoke on condition of anonymity, confirmed that American and Iranian negotiators had agreed on a 60-day memorandum of understanding under which Iran would remove mines placed in the strait and agree not to harass any commercial shipping or demand tolls for passage through the key maritime chokepoint.
In return, the US would end the blockade it has kept on Iranian ports as shipping through the strait resumes.
President Donald Trump is considering whether approve a 60-day deal to extend the shaky ceasefire between the United States and Iran and reopen the Strait of Hormuz while setting up negotiations towards further agreements on Tehran’s nuclear program, US officials told The Independent on Thursday.
The officials, who spoke on condition of anonymity, confirmed that American and Iranian negotiators had agreed on a 60-day memorandum of understanding under which Iran would remove mines placed in the strait and agree not to harass any commercial shipping or demand tolls for passage through the key maritime chokepoint.
In return, the US would end the blockade it has kept on Iranian ports as shipping through the strait resumes.
You can read the full report below:
Surging prices are flattering the dollar amount of spending as the Iran war drives inflation in the United States.
Consumer spending, which accounts for more than two-thirds of economic activity, increased 0.5% last month after surging 1.0% in March, new data shows.
Hefty tax refunds have provided a cushion for consumers, especially lower-income households.
Consumers are also tapping into savings, with the saving rate dropping to 2.6% last month. That was the lowest level since June 2022 and was down from 3.2% in March.
Income was unchanged. After adjusting for inflation, income at the disposal of households fell 0.5%.
A US-Iran memorandum of understanding on a 60-day ceasefire extension has been reached but still requires President Trump’s approval, The Independent understands.
The S&P 500 and the Nasdaq rose on Thursday after a report said the US and Iran had reached a deal.
Axios reported that Washington and Tehran had reached an agreement to extend the ceasefire and launch negotiations on Iran’s nuclear program, but President Donald Trump still needed to give final approval.
“Traders are on a hair trigger with the back and forth on deal news, and have been leaning long to avoid getting trampled by a better-than-expected outcome.
“The harder part is that the inflationary forces may not abate as fast as markets want,” said Jamie Cox, managing partner at Harris Financial Group.
Economic data showed US inflation increased at its fastest pace in three years in April, driven by higher energy prices amid the Iran war.
Inflation in the United States increased at its fastest pace in three years in April as the Iran war started to bite.
Surging price pressures are eroding household income and could restrain consumer spending and economic growth this quarter, with with disposable income dropping for a third straight month in April, data shows.
Gasoline prices have increased more than 50% since the war started at the end of February. But consumers are also paying higher prices for other goods and services.
Excluding the volatile food and energy components, the PCE price index increased 3.3% year-on-year in April after rising 3.2% in March. The so-called core PCE inflation gained 0.2% in April on a monthly basis after advancing 0.3% in March.
Services prices increased 0.3% in April for the third straight month. The cost of housing and utilities rose 0.6% while prices for transportation services climbed 0.4%. Food services and accommodations prices increased 0.5%.
Donald Trump, who campaigned on a promise to lower inflation, faces tanking approval ratings ahead of the November midterms. A Reuters/Ipsos survey last week showed levels were nearly at their lowest since he returned to the White House, hit by a drop in support among Republicans.
As the war grinds on, conservative estimates put the cost of munitions to the US in the multi-billions. But some analysts suggest the figure could already be as high as $1 trillion.
Professor Linda Bilmes, senior lecturer in public policy at Harvard Kennedy School, told The Independent that the reported upfront costs are just the “tip of the iceberg”.
“When the Pentagon talked about their figures of $29bn, they systematically underestimate the cost because they are basing this on the historical cost of inventory of munitions. But the actual replacement costs are much higher,” explained Professor Bilmes, who served as assistant secretary and CFO of the US department of commerce during the Clinton administration.
“When you put together the replacement costs … the obligations we have for rebuilding … and the long-term cost of caring for veterans, benefits, the paying debt service on all the borrowing and the increases to the base that come as a consequence of this war, you very quickly reach a trillion dollar figure,” Professor Bilmes said.
“When I look at it, there’s no way it can end up costing less than that.”
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Russia on Thursday called on the U.S. and Iran not to slide back into armed conflict, but to continue talking, Russian Foreign Ministry spokeswoman Maria Zakharova said.
Russia is ready to assist in the removal of enriched uranium from Iran, she added, but Moscow “is not imposing its initiative.”
Washington has not taken Russia up on the enrichment offer which has been on the table for months.
US treasury secretary Scott Bessent writes on social media that Oman should know that the US will “aggressively” target any actors involved in facilitating tolls for the Strait of Hormuz.
He said any partners in the effort to impose a tolling system in the Strait will be penalised.
American and Iranian negotiators have reportedly reached an agreement on a 60-day memorandum of understanding to extend the ceasefire and start talks on the central nuclear issue, according to Axios.
After weeks of deliberation, US officials told the outlet that the MOU will allow “unrestricted” shipping through the Strait of Hormuz, without tolls or harassment, while Iran will reportedly have to remove all mines from the strait within 30 days.
The US naval blockade would also have to be lifted and Iran would commit not to pursue a nuclear weapon, officials told Axios, adding that the US would commit to discussing sanctions relief and the release of frozen Iranian funds.
Crucially, the report said, Donald Trump has not given his final approval on the MOU. Iran also has not commented publicly. US officials claimed they were prepared to sign.
US negotiators briefed have reportedly briefed Trump on the offer. The president was said to have relayed that he wanted a couple of days to think about it.
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