US President Donald Trump announced that the United States and Iran had reached a ceasefire agreement ending months of hostilities and paving the way for the reopening of the strategically vital Strait of Hormuz, a move that immediately sent global oil prices lower.
According to reports by the BBC and Al Jazeera, Iran’s Deputy Foreign Minister Kazem Gharibabadi later confirmed on state television that a deal had been finalized, while Iran’s military leadership portrayed the agreement as a victory for Tehran.
“The Deal with the Islamic Republic of Iran is now complete,” Trump wrote on his Truth Social platform. “I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!”
Trump described the agreement as a major diplomatic achievement that would “bring Peace and Security to the whole Region” and suggested that a broader peace accord with Iran could follow.
The announcement comes after months of heightened tensions that began when the United States and Israel launched military strikes against Iran late last year, followed by a US naval blockade and severe disruptions to shipping through the Strait of Hormuz, one of the world’s most important oil transit routes.
Pakistan Prime Minister Shehbaz Sharif welcomed the breakthrough, saying the agreement would end military operations “on all fronts, including in Lebanon.” He said the accord is expected to be formally signed in Switzerland on Friday, although details of the final arrangement are still emerging.
In an interview with The New York Times, Trump said the agreement would ensure that the Strait of Hormuz remains “permanently toll free.” He also warned that Washington could resume military operations if Iran failed to reach a final nuclear settlement with the United States.
Trump further asserted that US military action and the subsequent blockade had “remade the Middle East in America’s favor,” according to the newspaper.
Financial markets reacted positively to the announcement. BBC reported that Brent crude oil prices fell 3.8 percent to $84.02 per barrel in early Asian trading, while US benchmark crude declined 4.1 percent to $81.40, reflecting expectations of restored energy supplies and maritime traffic.
Meanwhile, Iran’s semi-official Mehr News Agency published what it described as draft provisions of a 14-point memorandum of understanding between Tehran and Washington. According to the report, the proposed framework includes a permanent ceasefire, lifting of the US naval blockade within 30 days, reopening of the Strait of Hormuz, suspension of sanctions on Iranian oil exports, reconstruction assistance for Iran, and renewed commitments by Tehran not to develop nuclear weapons.
Neither Washington nor Tehran has officially confirmed the reported provisions.
Mehr also reported that Iran seeks the release of part of its frozen overseas assets, suspension of oil sanctions, and removal of the naval blockade before final negotiations commence. The agency said the eventual agreement could be endorsed through a resolution of the United Nations Security Council.
The reported breakthrough marks the most significant easing of tensions between Washington and Tehran in years and could have far-reaching implications for regional security, global energy markets and international shipping.
