An agreement on a memorandum of understanding between the two nations is close at hand as far as easing the tensions in the region. The memorandum involves a 60-day ceasefire extension as well as opening up of the Strait of Hormuz which is an important channel for shipping oil products and which has been blocked by Iran. Despite suggestions from American authorities, among them the secretary of state Marco Rubio, that the agreement can be made imminently, Iran insists that no signatures will be immediate as there are other outstanding problems such as sanction and nuclear issues. The memorandum has been receiving criticism from many Republicans in the U.S. for being too lenient, while the world markets have reacted negatively with drops in oil prices.