Key facts
- The US and Iran have reached a memorandum of understanding to halt hostilities and reopen the Strait of Hormuz.
- The agreement aims to end months of conflict and an energy crisis.
- A signing ceremony is expected Friday in Switzerland, mediated by Pakistan.
- The deal includes a 60-day period to address Iran's nuclear program.
- Israel's continued military actions in Lebanon posed a challenge to the negotiations.
The United States and Iran have reached an initial agreement to halt hostilities and reopen the Strait of Hormuz, potentially ending months of conflict and an energy crisis. The memorandum of understanding, announced by President Donald Trump and confirmed by Iranian officials, aims to de-escalate tensions that have gripped the Middle East and impacted global markets.
Details of the deal remain scarce, with implementation contingent on a signing ceremony scheduled for Friday in Switzerland, mediated by Pakistan. The agreement faces significant challenges, including ongoing fighting between Israel and Iran-backed Hezbollah in Lebanon, which nearly jeopardized the negotiations. Furthermore, the deal mandates a 60-day period for intensive technical talks to address Iran's nuclear program, a complex issue that previously took years to resolve.
President Trump celebrated the preliminary accord, authorizing the opening of the Strait of Hormuz and the removal of the US naval blockade. However, he later clarified that the reopening of the vital waterway, through which a significant portion of global oil and gas passes, would not commence until the formal signing. Iran's deputy foreign minister, Kazem Gharibabadi, confirmed the agreement, stating that military operations on all fronts, including Lebanon, would cease permanently from Monday night.
The news of a potential end to the conflict and the reopening of the Strait of Hormuz led to a rise in stock markets and a fall in oil prices on Monday morning. The conflict had resulted in thousands of casualties and triggered a historic energy crisis. The agreement comes as President Trump is set to attend a G7 summit in the French Alps, where discussions on the conflict and international cooperation are expected.