US President Donald Trump announced that Washington and Tehran have agreed on a framework to end months of conflict, with a formal agreement expected to be signed in Switzerland on Friday.
The breakthrough, which was also confirmed by Iranian officials and Pakistani Prime Minister Shehbaz Sharif, paves the way for the reopening of the Strait of Hormuz and the lifting of the US blockade on Iranian ports, developments that immediately sent oil prices lower.
Trump declared on Truth Social that the agreement with Iran was complete and said shipping through the strategically important waterway would resume on Friday.
“Ships of the World, start your engines. Let the oil flow!”
Sharif said the pact calls for “the immediate and permanent termination of military operations on all fronts, including in Lebanon”, where fighting between Israel and Hezbollah has complicated negotiations in recent weeks.
Brent crude and US West Texas Intermediate futures both fell more than 4% in early Monday trade as markets reacted to the prospect of oil supplies flowing normally again.
The agreement comes despite fresh Israeli strikes on Beirut over the weekend. Trump criticised the attack, saying: “This morning’s attack on Beirut should not have happened, particularly on a special day when we are so close to a Peace Deal with Iran.”
According to Reuters, further negotiations are expected during a proposed 60-day ceasefire period, with sanctions relief and Iran’s nuclear programme among issues to be addressed.
A senior Iranian official told Reuters the draft framework includes a commitment by Tehran not to produce or acquire nuclear weapons, while the US would release US$25 billion in frozen Iranian assets.
Israel, which was not party to the negotiations, had yet to issue an immediate response to the announcement.
Reuters
