The U.S. and Iran reached a “tentative deal” to extend ceasefire.

U.S. officials have projected cautious optimism over a new memorandum of understanding between the U.S. and Iran that could ease restrictions with the Strait of Hormuz. MS NOW Contributor Inzamam

The White House confirmed that they had reached an 60-day ceasefire agreement with Iran, but it is waiting for Trump's final approval.

Alice Barr reports from Washington as U.S. and Iranian officials work toward extending a ceasefire agreement still awaiting President Trump’s approval.

Oil prices have jumped after the US carried out new attacks on Iran, targeting a military site in Bandar Abbas, a strategic port city. The US Central Command (Centcom) said its forces also shot down four Iranian drones "that posed a threat around the Strait of Hormuz".

The Trump administration on Thursday signaled a deal to end the Iran war could be close. Oil prices, however, may not roll back to levels seen before the conflict very soon, if at all. Oil analysts think the big question for markets right now isn’t when oil prices will return to pre-war levels near $60 a barrel,

Oil prices have been volatile in recent ​sessions on conflicting signals on the possibility of an end to the three-month war.

US officials earlier told the BBC that the framework of a ceasefire extension deal had been agreed, pending the approval of Trump and Iran's leadership.