May 29 (UPI) — U.S. Vice President JD Vance said the United States and Iran were very close to finalizing a 60-day memorandum of understanding to extend their cease-fire and while they were “not there yet,” Washington was well placed to check Iran’s ability to develop a nuclear weapon.

“There are a couple of issues on the nuclear stuff, the highly enriched stockpile and also the question of enrichment. We do think they’re negotiating, at least so far, in good faith, and we’re making some progress,” Vance told reporters Thursday at Joint Base Andrews in Maryland.

“We’re reopening the Strait of Hormuz, we’ve already decimated their conventional military and we’re in a position where we could substantially set back their nuclear program, not just during the term of this president, but over the long term.”

Vance said it was difficult to say if, or precisely when, President Donald Trump would sign the MOU as there was still some back and forth on some of the wording but added that while he couldn’t promise agreement would be reached, he felt confident it would.

The framework of the deal negotiators are working to finalize, which must also be signed by Tehran, emerged on Thursday.

It extends the cease-fire agreed in April to allow talks on Iran’s nuclear enrichment program and U.S. sanctions and reopens the Strait of Hormuz on the understanding Iran would not levy tolls on shipping and would de-mine the vital sea passage.

The MOU kicks the thorniest and logistically complex issues of the nuclear question down the road but the lifting of the U.S. naval blockade of Iran and waiver of economic sanctions would allow Iran to sell its oil on the open international market for the first time in 8 years.

The fighting between Israel and Hezbollah in Lebanon would also end — though it was by no means clear how or if that would materialize.

The framework came a day after the White House dismissed a 14-point draft MOU carried by state-run media in Iran on Wednesday as a “complete fabrication.”

While the Iranian version includes the lifting of the blockade of Iranian ports and the reopening of the Strait of Hormuz to commercial vessels, it says Iran would retain control, managing and overseeing transiting ships in partnership with neighboring Oman.

The developments saw global oil prices continue to soften with the benchmark Brent crude contract changing hands on Friday morning in London at $92.24 a barrel, down $1.47, while American crude was down $1.36 a barrel at $87.54.