Key facts
- A US-Iran peace accord has been finalized, with a signing ceremony scheduled for June 19 in Switzerland.
- The deal includes an immediate cessation of military operations and the reopening of the Strait of Hormuz.
- Negotiations on Iran's nuclear program and US sanctions will follow within 60 days.
- The US will release $12 billion of Iran's frozen assets as part of the agreement.
- Marine traffic through the Strait of Hormuz will be regulated by Iran in coordination with Oman.
The United States and Iran have finalized a preliminary peace agreement to end their conflict, with a signing ceremony scheduled for June 19 in Switzerland. The deal, mediated by Pakistan, includes an immediate and permanent cessation of all military operations and the reopening of the Strait of Hormuz.
According to statements from both sides, the Strait of Hormuz will begin to reopen to all commercial vessels as soon as the memorandum is signed, and the US blockade on Iranian ports will be lifted. Marine traffic through the strait will be regulated by Iran in coordination with Oman. President Trump confirmed the end of the naval blockade and stated the Strait of Hormuz would be reopened.
Following the initial agreement, negotiations on more contentious issues, including Iran's nuclear program and US sanctions, will commence over the subsequent 60 days. As part of the accord, the US will release $12 billion of Iran's frozen assets. Iran's military has claimed victory over the US and Israel, viewing the deal as a success of its diplomacy and war deterrence.
International reactions have been largely positive, with Qatar, the UK, France, the UN, Japan, New Zealand, Germany, Australia, and Turkey welcoming the agreement and expressing hope for regional stability and peace. However, some US politicians, including Lindsey Graham and Mike Pence, have expressed skepticism and concern over differing interpretations and the need for Iran to dismantle its nuclear and missile programs. Top Democrat Hakeem Jeffries criticized the deal, stating America is less safe. Israel has renewed air attacks on Beirut despite the ceasefire agreement, raising concerns about its implementation.
Oil markets responded positively to the news, with Brent crude falling to $83.82. Falling oil prices are expected to offer relief to central banks concerned about inflation. Stock markets also surged following the confirmation of the ceasefire deal. However, it is anticipated that traffic in the Strait of Hormuz may take months to return to pre-war levels, even after de-mining operations.