US and Iran Draft 60-Day Deal as Missiles Hit Kuwait, May 29

The US and Iran have drafted a 60-day memorandum of understanding to extend their ceasefire and gradually reopen the Strait of Hormuz, according to US officials. The deal would also launch nuclear negotiations. However, President Trump has not yet signed off on the agreement. Meanwhile, Iran fired a ballistic missile toward Kuwait on Thursday, which Kuwaiti forces intercepted. Both sides are accusing each other of violating the fragile ceasefire.

Deal Framework Still Needs Trump’s Approval

Negotiators from both countries have agreed on draft terms to open the Strait of Hormuz over 60 days through synchronized steps. Iran would loosen its grip on the waterway while the US pulls back its naval blockade. Vice President JD Vance said negotiators are still working through “a couple of language points” but making progress. Trump has been briefed on the draft but has not given final approval, and Treasury Secretary Scott Bessent said Trump has “several red lines” including demands that Iran turn over highly enriched uranium and abandon nuclear weapons.

Missiles and Accusations Undermine Peace Efforts

Iran launched a ballistic missile at Kuwait late Thursday, which Kuwaiti forces successfully intercepted with no damage or casualties reported. Iran said it targeted a US air base in response to American strikes on Bandar Abbas. The US military conducted what it called “self-defense strikes” on missile launch sites and Iranian boats attempting to lay mines. Kuwait’s Foreign Affairs Ministry denounced the Iranian attacks as “heinous,” while Iran’s deputy foreign minister called US strikes “provocations” that violated the ceasefire.

US Tightens Economic Pressure With New Sanctions

The Trump administration sanctioned Iran’s Persian Gulf Strait Authority on Wednesday, the agency Tehran created to control shipping and charge tolls up to $2 million per vessel. Treasury Secretary Scott Bessent said the sanctions prove “Economic Fury has left the regime desperate for cash.” The sanctions target anyone cooperating with the authority. Trump also warned Oman against partnering with Iran to jointly control the strait, saying “Oman will behave just like everybody else or we’ll have to blow them up.”

Three Months of War and Mounting Pressure

The war began three months ago after a US military strike accidentally hit a girls’ school in Iran, killing 168 children and 14 teachers. The strike resulted from outdated information about a nearby naval base. CENTCOM said its investigation into the incident is ongoing but nearing completion. The Strait closure has caused global economic shock, with oil, natural gas, fertilizer and other essential goods rising in price. Stock markets rose Thursday on reports of diplomatic progress, but Trump signaled he will not be rushed by economic or political pressure from midterm elections.

Final Thoughts

Negotiators have drafted a 60-day deal to reopen the Strait of Hormuz and start nuclear talks, but Trump approval remains uncertain. Ongoing missile strikes and mutual ceasefire accusations suggest the agreement faces significant hurdles before either leader signs.

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