Historic US-Iran Deal Announced: Strait Of Hormuz To Reopen As Middle East War Ends

IN a dramatic breakthrough after months of devastating conflict, the United States and Iran have struck a deal to end the war across the Middle East and immediately reopen the strategic Strait of Hormuz, sparking a wave of global relief and a sharp drop in oil prices.

The agreement, brokered by Pakistan, is set to be formally signed on Friday in Switzerland. The announcement was confirmed by US President Donald Trump, who took to social media to declare the end of hostilities.

“The Deal with the Islamic Republic of Iran is now complete. Ships of the World, start your engines. Let the oil flow!” President Trump said on Sunday.

The breakthrough brings an end to a bloody conflict that began on February 28, triggered by a massive US-led campaign of airstrikes. As part of the accord, Tehran has agreed to lift its blockade of the Strait of Hormuz, a vital artery through which a fifth of global oil passes.

Relief and Caution in the Region

While the deal was welcomed by Saudi Arabia and other regional powers, and ordinary Iranians voiced hope it would restore calm, details remain scarce.

Iran’s Deputy Foreign Minister, Kazem Gharibabadi, said in televised remarks that the agreement puts an “immediate end” to the war, adding that both sides would hold talks within two months to seek a “final agreement.” Tehran’s military has already hailed the outcome as a victory, claiming it had “humiliated” the US and Israel.

However, the ceasefire was immediately met with defiance from Israel. Defence Minister Israel Katz insisted that Israeli forces would remain in Lebanon, Syria, and Gaza indefinitely, despite the deal applying to “all fronts.”

“Prime Minister Benjamin Netanyahu and I are pursuing a clear policy under which the IDF will remain in the security zones… for an unlimited period of time,” Katz said on Monday.

Financial Incentives and Unclear Terms

Reports from Iran’s Mehr news agency suggest the US will release $12 billion (£9.7 billion) in frozen assets to Tehran before negotiations even begin. A leaked 14-point memorandum reportedly stipulates the release of $24 billion (£19.4 billion) over a 60-day negotiation period.

The Trump administration has not commented on the financial details, which could prove contentious as Washington continues to push for an end to Tehran’s nuclear ambitions.

UN Secretary-General Antonio Guterres called the development a “critical step” toward resolving the war, while the UK, France, Germany, and Italy said they were ready to lift sanctions on Iran and would work to “seize this moment.”

Markets React

The announcement caused immediate turbulence in global markets. Oil prices plunged nearly five per cent on Monday morning, with West Texas Intermediate approaching $80 a barrel for the first time since early March.

US Vice President JD Vance told Fox News he plans to attend the signing ceremony in Geneva, adding that it is possible President Trump could also attend.

— Additional reporting by AFP