Key facts
- President Trump announced a US-Iran peace deal, ending the naval blockade in the Strait of Hormuz.
- The official signing ceremony is scheduled for June 19 in Switzerland.
- Stock markets surged, while Brent crude prices fell following the announcement.
- Iran expects sanctions relief and an end to attacks on Lebanon as reciprocal actions.
- Experts estimate it could take months for traffic in the Strait of Hormuz to return to pre-war levels.
President Donald Trump announced a peace deal with Iran, which includes ending Washington's naval blockade in the Strait of Hormuz. The agreement is set to be officially signed on June 19 in Switzerland, according to Pakistan's Prime Minister Shehbaz Sharif. The announcement has led to a surge in stock markets across the Asia-Pacific, with Japan's Nikkei 225 rising over 5 percent, while Brent crude prices fell more than 4 percent to around $83.70 per barrel.
Despite the announcement, the White House has yet to release the text of the memorandum of understanding (MOU). Preparatory meetings to finalize the agreement are expected to take place in Qatar this week. Iranians are awaiting the deal's implementation, with expectations for sanctions relief and an end to attacks on Lebanon. Iranian leaders have indicated they will abide by their obligations only after the official signing, emphasizing the need for reciprocal actions and sincerity from all sides, particularly regarding Israel's actions in Lebanon.
Experts suggest that de-mining operations and the shipping industry's confidence will be critical for restoring normal traffic through the Strait of Hormuz. Rockford Weitz, a maritime studies professor, noted that it could take months for conditions to return to pre-war levels, given the disruption and potential damage to production facilities. Retired US General Mark Kimmitt has cautioned that potential spoilers, including Israel, Hezbollah, Iran, and even elements within the US, could derail the agreement. Democratic lawmaker Gregory Meeks cautiously welcomed the deal but called for rigorous congressional oversight.