US President Donald Trump announced that the United States and Iran had completed a deal that would reopen the Strait of Hormuz and end the US naval blockade. This marks what he described as a major breakthrough after months of conflict that rattled global energy markets and raised fears of a wider regional war. Trump said he was authorising the reopening of the waterway and lifting the US blockade that had been imposed during the conflict. The peace deal brings a sigh of relief for global share markets and the energy market which have been hit hard due to the supply chain crisis.
Check key outcomes of the US-Iran deal
Ending hostilities: The agreement brings an immediate pause to hostilities on all fronts, including Lebanon. It also includes the lifting of the US naval blockade on Iranian ports and the reopening of the Strait of Hormuz. Under the terms set out so far, both sides have agreed to suspend military action immediately.
Negotiations and sanction relief: According to officials involved in the mediation, the deal also sets the stage for further negotiations on Iran’s nuclear programme and sanctions relief over a 60-day period. As per the agreement, a broader negotiation process is expected to follow the initial signing.
Restoration of commercial shipping and sale of Iranian oil: The reopening of the Strait of Hormuz is also part of the arrangement, along with steps toward restoring commercial shipping flows in the region. The removal of US naval blockade will soon allow Iran to sell its oil again. The lifting of the US sanctions will pave the way for Iran to do more trade.
Relief for Iranians: Iran’s Supreme National Security Council has said that technical deliberations will continue before a final settlement is reached after the signing ceremony. However, the deal brings immediate relief for the Iranian people. Iranians expect the sanctions to be relieved after the deal is signed. They also expect that negotiations will pave a way for unfreezing their assets.
Strait of Hormuz: The deal paves the way for the reopening of the Strait of Hormuz, but according to maritime trade experts, the demining process and restoring confidence among the merchants will be a key step towards normalcy. According to them, it could take months for conditions at the Strait of Hormuz to fully return to normal as it was befor the war.
The peace deal negotiation
The announcement followed a day of intense diplomatic activity. Several international news organisations reported that US and Iranian negotiators had moved closer to an understanding after weeks of negotiations involving regional mediators.
According to Pakistan Prime Minister Shehbaz Sharif, US and Iranian officials will be signing the deal on June 19. Trump presented the agreement as evidence that his administration had succeeded where previous US presidents had fallen short.
