US and Iran reach tentative deal to extend ceasefire

US and Iranian negotiators reached a tentative deal to extend their ceasefire. They also agreed to start new talks over Iran's nuclear program, the Associated Press reported. The Trump administration said a full agreement could come soon.

The situation on the ground was less calm than the talks. Both sides exchanged fire this week. Iran said it targeted a US air base in response to American strikes, which it called a violation of the ceasefire. Reports of a final deal moved markets even as the shooting went on.

Oil sat at the center of it. The fighting threatens shipping through the Strait of Hormuz. This is a narrow sea passage that carries a large share of the world's oil and gas. Brent crude traded near $96 a barrel, and US benchmark crude near $90, TheStreet reported. Prices swung on each new headline.

The stakes reach well beyond the region. Higher oil prices push inflation up. That is the very thing keeping the Fed from cutting interest rates. A lasting ceasefire would ease that pressure. A breakdown would do the opposite. Investors are preparing for both outcomes at once.