Details began to emerge on Tuesday of the US and Iran's interim agreement to end the war in the Middle East, with US President Donald Trump saying it will rule out a nuclear weapon for Tehran and a US official ​saying it allows Iran to sell oil upon signing.

The memorandum of understanding (MoU) agreed upon this week, though yet to be made public, extends a tenuous ceasefire announced in April by another 60 days to allow the ‌warring countries to negotiate a permanent truce.

The MoU is due to be signed on Friday at Bürgenstock, a mountain resort in central Switzerland, according to Swiss foreign ministry.

What they say

Under the deal, the US will end its blockade of Iran's ports while Tehran will restore the passage of oil tankers and other maritime traffic through the Strait of Hormuz.

Trump said the agreement states clearly that Tehran will not have a nuclear weapon and the full text would be made public in a formal setting in a few days.

Israel has not directly participated in the negotiations and has distanced itself from both the April ceasefire and the latest US-Iran agreement, adding uncertainty to ​whether the new ceasefire will hold.

US Vice President JD Vance ​said that the agreement included Israel and Lebanon, contradicting Israeli Prime Minister Benjamin Netanyahu, who said on Monday that Israel is not bound by it, and will not withdraw from southern Lebanon.

A senior US official was quoted by Reuters as saying that the agreement allows Iran to immediately begin selling oil and fuel, and ​included banking, transportation and insurance services to facilitate the sales.

US and Iranian officials say the deal could eventually deliver substantial economic benefits to Iran by lifting sanctions and unfreezing foreign assets. It could also set up a $300 billion reconstruction fund, ​paid for by neighboring Gulf states that host US military bases and were hit by Iranian attacks during the war, if Iran complies with other terms.

Oil prices ​slid more than 2% to new three-month lows on Tuesday, a day after tumbling nearly 5% following news of the deal, though industry officials say Middle East oil and gas output will take months to fully recover.

Caution over shipping

Both the US and Iran say the Strait of Hormuz, which normally carries about one-fifth of the world's trade in oil and liquefied natural gas, will be open from Friday.

On Tuesday, Iranian state television reported operations to lift its maritime blockade, while stressing that vessels must still coordinate with Iran's Revolutionary Guards.

The US ​said the strait would be open toll-free for 60 days and it would expect that provision to be part of a final agreement. Iran ​has suggested it will retain control with Oman over the strait.

However, shipping through the strait stayed at a trickle on Tuesday, according to tracking platform Kpler, which had detected just four crossings of the strategic waterway that day by vessels carrying raw materials as of 3 p.m. on Tuesday.

"The Strait of Hormuz continues to operate below normal commercial levels, despite signals of diplomatic progress," Kpler said on X. "Key operational questions remain unresolved, including transit security, navigation fees and safe passage arrangements," it added.

Difficult talks pending

Iranian Foreign Minister Seyed Abbas Araghchi said on Tuesday that negotiations between Iran and the US on a final agreement will begin on Friday, according to the official news agency IRNA.

Araghchi said in the second stage, negotiations will continue for a 60-day period to reach a final agreement on nuclear issues and the removal of sanctions on Iran.

Two other issues that Trump and Netanyahu used to justify the war appear not to be on the agenda: ending Iran's support for regional armed militia groups and curbing its missile program.

Trump has publicly criticized Netanyahu and expressed frustration at Israel's military campaign, saying on Tuesday he was "not happy" with the way Israel had handled itself.

"Iran wants to get it done," Trump told reporters about the next phase of negotiations with Iran, a sentiment he has repeated since the war's earliest days. "They have to get back to business, and the relationship is now normalized, so I think it's going to go pretty quickly." Earlier he described the deal as "a wall to a nuclear weapon" for Iran.

(With input from agencies)