Oil has shed more than 7% across two sessions on the back of the deal, with prices sliding to fresh three-month lows as markets price in the return of Iranian barrels. The speed of the sell-off reflects how much of a risk premium had been embedded during the Hormuz blockade, but traders are cautious: industry officials say regional output will take months to fully recover, and shipping companies are waiting for proof the ceasefire holds before resuming normal routing. The unresolved Israel-Lebanon dimension and Iran's insistence on retaining Revolutionary Guards oversight of Hormuz passage introduce enough uncertainty to keep a floor under prices near term.---The US and Iran have agreed a 60-day MOU extending their ceasefire, reopening the Strait of Hormuz from Friday and allowing Iranian oil exports to resume, with a permanent deal still to be negotiated. Summary:The US and Iran have signed a memorandum of understanding extending their April ceasefire by 60 days to allow negotiations toward a permanent truce, with formal signing set for Friday in SwitzerlandKey MOU terms include the reopening of the Strait of Hormuz for free commercial shipping, the immediate release of frozen Iranian assets, and temporary sanctions waivers enabling Iran to export oilIran agreed not to develop or acquire nuclear weapons, but its existing nuclear programme will continue during talks, with the enriched uranium stockpile to be addressed in future negotiationsIsrael has distanced itself from the agreement, with Prime Minister Netanyahu stating Israel is not bound by it and will not withdraw from southern Lebanon, a position that complicates the ceasefire's durabilityA final deal could include full sanctions relief, a US military withdrawal within 30 days, and a $300 billion Gulf-state-funded reconstruction fund for Iran, contingent on further complianceDetails of the interim agreement between the United States and Iran have begun to emerge, offering the clearest picture yet of where the two countries stand and what a 60-day diplomatic sprint must deliver to prevent the region from sliding back to war.The memorandum of understanding, not yet formally released but set to be signed in Switzerland on Friday, extends the ceasefire announced in April while negotiators tackle the deeper issues that neither side has resolved. Among its immediate provisions: the Strait of Hormuz, effectively shut since US and Israeli strikes on February 28, will reopen to free commercial shipping, frozen Iranian assets will be released, and Tehran will be permitted to resume oil exports under temporary sanctions waivers. Iran also agreed that it will not develop or acquire nuclear weapons, though its existing nuclear programme continues and the fate of its enriched uranium stockpile is deferred to later talks.President Trump described the agreement as a barrier against a nuclear-armed Iran and said the full text would be made public in coming days. Speaking at the G7 in France, he expressed confidence the next phase of talks would move quickly, citing Iran's desire to return to normal economic life after a destructive conflict. Iran has long maintained its nuclear programme is for peaceful purposes only.The accord leaves significant complications unaddressed. Iran's ballistic missile programme and its support for regional armed groups, including Hezbollah, were not on the agenda. Israel, which was not party to the negotiations, has explicitly rejected the ceasefire's application to its operations in southern Lebanon, and Hezbollah has signalled it will not accept a permanent arrangement while Israeli forces remain there. Iran's military command warned Israel to expect consequences if strikes on Lebanon continue.Shipping markets are watching closely. Both sides say Hormuz will be open from Friday, but Iran's Revolutionary Guards retain a coordination role over vessel passage, and commercial operators say they will hold off on normalising routes until the ceasefire proves durable. Oil prices fell more than 2% on Tuesday, extending a slide of nearly 5% the previous session, though a full recovery in regional output is expected to take months.If a permanent deal is reached, the framework on the table would be sweeping: full sanctions relief, a US military withdrawal, and a reconstruction fund of up to $300 billion financed by Gulf states. That outcome remains a considerable distance away. This article was written by Eamonn Sheridan at investinglive.com.