Key facts
- The United States and Iran signed a memorandum of understanding to end hostilities.
- The Strait of Hormuz has been reopened following the agreement.
- President Donald Trump signed the deal with Iranian President Masoud Pezeshkian.
- The agreement is known as the Islamabad Memorandum of Understanding.
- A 60-day deadline is set for resolving outstanding issues, including Iran's nuclear program and sanctions relief.
- Israel has published a map detailing an expanded zone of control in southern Lebanon, defying the agreement.
- US-Iran talks scheduled for Friday at the Buergenstock resort were cancelled.
- The deal was brokered by Pakistan and Qatar.
- Oil prices saw fluctuations, initially falling and then rising amid doubts about the deal's durability.
- Major Gulf airlines are recovering to approximately 82% of pre-conflict flight levels.
The United States and Iran have signed a memorandum of understanding (MOU) to end hostilities and reopen the Strait of Hormuz, marking an end to months of conflict. President Donald Trump signed the agreement, referred to as the Islamabad Memorandum of Understanding, with Iranian President Masoud Pezeshkian. The deal, which began with a ceasefire on all fronts, includes respect for sovereignty and the removal of naval blockades.
Critical details regarding Iran's nuclear program, including dismantlement timelines, and sanctions relief remain to be negotiated within a 60-day deadline. The agreement has drawn criticism, with some analysts viewing it as a strategic defeat for the US, failing to achieve stated war aims and alarming regional actors like Israel and Gulf states. In defiance of the MOU, Israel published a map detailing an expanded zone of control in southern Lebanon, actions that President Trump criticized due to civilian casualties. Hezbollah reported fresh clashes with Israeli forces following Israeli strikes that killed three people, despite the US-Iran agreement.
The conflict began in February and has had significant economic and geopolitical repercussions. The resumption of oil flows through the Strait of Hormuz is a key focus for global markets. Brent crude oil prices saw fluctuations, initially dipping as tanker traffic resumed, with expectations of over 85 million barrels being released, but later edged up amid doubts about the deal's durability. Major Gulf airlines are recovering, reaching approximately 82% of pre-conflict flight levels, with some carriers exceeding pre-war volumes. An Iranian analyst suggests the conflict has bolstered Iran's regional alliances and strategic depth.
Initial US-Iran talks scheduled for Friday at the Buergenstock resort in Switzerland were cancelled after Iran's delegation delayed its departure due to Israeli strikes in Lebanon. The deal was brokered through diplomatic efforts by Pakistan and Qatar. President Trump signed an initial deal with Iran during a dinner at the Palace of Versailles on Wednesday, surprising French officials. The agreement takes immediate effect, with Iran reopening the Strait of Hormuz and waiving sanctions. Separately, China's C919 jets were grounded for safety checks.
Details on nuclear dismantlement timelines and sanctions relief are pending. The agreement allows for 60 days of discussions to determine the outcome of the debate surrounding Iran's future. Iran's supreme leader, Mojtaba Khamenei, stated that Donald Trump signed the deal 'out of desperation'.