Key facts
- U.S. forces shot down multiple Iranian one-way attack drones targeting commercial traffic near the Strait of Hormuz.
- The U.S. and Iran are reportedly close to an agreement to end their conflict.
- A draft deal includes reopening the Strait of Hormuz and lifting U.S. naval blockades on Iranian ports.
- Iran's nuclear program and potential war reparations are part of the proposed agreement.
- Israel stated it will not be party to the proposed agreement.
- Global stock markets rose and oil prices fell on the news of potential peace.
U.S. forces shot down multiple Iranian one-way attack drones heading toward the Strait of Hormuz, a vital waterway for global oil and gas supply, with U.S. Central Command confirming the action and stating the strait remains open. This incident occurred as the U.S. and Iran signaled that an agreement to end their conflict was close, with both sides having agreed on a text for a tentative deal.
The proposed memorandum of understanding reportedly includes reopening the Strait of Hormuz and lifting the U.S. naval blockade on Iranian ports. Negotiations over Iran's nuclear program would take place afterward. Iranian Foreign Minister Abbas Araqchi declared Iran the winner of the war and stated the country would retain control of traffic through the strait. However, Israel has stated it will not be party to the agreement, and a senior Israeli official indicated Israel expects to retain its freedom to act against threats.
Accounts of the draft proposal suggest it could favor Iran, with terms that might include the U.S. releasing frozen Iranian assets and waiving sanctions on its oil exports. The U.S. official stated the deal is performance-based, with no money released until Iran complies and the strait remains open. Discussions on war reparations and limits on Iran's missile program are also part of the proposals, though a U.S. official disputed the latter.
Progress toward the agreement emerged after a week of escalating hostilities in the Gulf. Global stock markets rose and oil prices fell on the news, with Brent crude prices dropping to their lowest in nearly two months.