A landmark peace deal between the United States and Iran is slated for signing this Friday in Switzerland, signaling an end to their prolonged conflict. The agreement, announced by US President Donald Trump, will see the crucial Strait of Hormuz—a global shipping artery for oil and gas—reopen, effectively lifting the US blockade on Iranian ports.
Breakthrough Negotiations and Key Announcements
Pakistani Prime Minister Shehbaz Sharif, whose nation facilitated the negotiations, confirmed the preliminary agreement. The pact includes an immediate and permanent cessation of military operations across all fronts, including Lebanon, a region that has seen continued hostilities between Israel and Hezbollah despite calls for a ceasefire. Iran’s Supreme National Security Council also affirmed that military actions would cease permanently from Monday night.
President Trump, announcing the deal on Truth Social, declared, “The Deal with the Islamic Republic of Iran is now complete.” He further ordered the end of the US blockade, urging, “Ships of the World, start your engines. Let the oil flow!”
Economic Impact and Future Talks
The announcement immediately sent ripples through global markets. Brent crude futures saw a 4 percent drop, while US West Texas Intermediate fell over 4.6 percent. Conversely, Asian stock markets experienced a rise, reflecting optimism about renewed stability in the Middle East and improved oil supply.
While the immediate terms focus on ending military actions and opening shipping routes, the critical issue of Iran's nuclear program will be addressed in subsequent negotiations. Iran's deputy foreign minister, Kazem Gharibabadi, indicated that a broader agreement, including sanctions relief, would be discussed during a 60-day ceasefire period. Earlier reports suggested the US would release $25 billion in frozen Iranian assets as part of the initial agreement, with the US expecting Iran to dismantle its nuclear program and destroy highly enriched uranium stockpiles.
Regional Tensions and International Response
The agreement comes despite ongoing tensions, notably an Israeli strike on Lebanon just days before the announcement, which drew criticism from both Iran and President Trump. Israeli Prime Minister Benjamin Netanyahu has maintained disagreements with Trump over demands to curb military action in Lebanon, insisting on Israel's freedom of operations there. However, Trump reportedly updated Netanyahu on the peace deal's progress, describing the Israeli leader as “a very difficult guy” but deserving of thanks for preventing a nuclear-armed Iran.
The E4 nations—the UK, France, Germany, and Italy—have expressed readiness to lift sanctions in response to Iran's steps on its nuclear program following the US-Iran deal. They emphasized the imperative that Iran never acquire a nuclear weapon and pledged to collaborate with the US, Iran, and the IAEA to ensure this outcome.