The United States and Iran have agreed to a deal aimed at ending months of conflict, with mediator Pakistan confirming that the agreement is expected to be formally signed in Switzerland on Friday.
US President Donald Trump announced that the Strait of Hormuz, a critical global shipping route, will be reopened and that the US naval blockade of Iran will be lifted.
“Let the oil flow!” Trump wrote on his Truth Social platform, as global oil prices fell in response to news of the breakthrough.
In Tehran, Iran’s Deputy Foreign Minister confirmed that an agreement had been reached, while senior military officials described the outcome as a victory for Iran.
The proposed deal follows a conflict that began on 28 February after US and Israeli strikes targeted sites across Iran, prompting retaliatory attacks by Iran against Israel and US-aligned states in the Gulf.
Key Elements of the Agreement
While the full text of the agreement has not yet been released, reports suggest it includes provisions to reopen the Strait of Hormuz, ease sanctions on Iran and pave the way for further negotiations on Tehran’s nuclear programme.
Pakistani Prime Minister Shehbaz Sharif, who has played a mediating role, said both countries had agreed to an immediate and permanent end to military operations across all fronts, including Lebanon.
However, uncertainty remains over whether Israel and the Iran-backed Hezbollah movement will adhere to the arrangement. Israel has indicated that its military operations in Lebanon may continue despite the announcement.
Nuclear Programme and Sanctions
Iranian state media reported that Tehran has committed not to develop nuclear weapons and that a 60-day negotiation period will be established to determine how nuclear materials will be handled.
Questions remain over the future of Iran’s uranium enrichment programme and the fate of its stockpile of highly enriched uranium.
The agreement is also expected to include sanctions relief and the release of frozen Iranian assets, although details on the timing and scope of these measures have yet to be clarified.
Positive Impact on Global Markets
Financial markets reacted positively to the announcement, with oil prices falling amid expectations that energy supplies will stabilise.
Economists say the agreement could help avert a prolonged global energy crisis and ease inflationary pressures that have contributed to higher fuel, food and energy costs worldwide.