US and Iran Agree to 60-Day Peace Framework to End War and Reopen Strait of Hormuz

The United States and Iran have reached an initial agreement to end a devastating three-and-a-half-month war, signaling the reopening of the Strait of Hormuz and a halt to military operations across the Middle East.[2][3]

The diplomatic breakthrough was announced by U.S. President Donald Trump on Sunday, who declared the deal "complete" just hours before hosting a massive UFC cage-fighting event on the White House South Lawn to celebrate his 80th birthday.[1]

Brokered heavily by Pakistan and Qatar, the framework establishes a 60-day Memorandum of Understanding (MoU) that is set to be formally signed this Friday in Switzerland.[2][3]

During this 60-day window, both Washington and Tehran have agreed to an immediate and permanent termination of military operations on all fronts, including the heavily contested conflict in Lebanon.[3][4]

For the global economy, the most critical immediate mechanism is the reopening of the Strait of Hormuz. The waterway, which normally handles more than a fifth of the world's daily oil supply, has been effectively closed to commercial traffic since the war erupted on February 28.[2][8]

Trump announced he had authorized the "immediate removal" of the U.S. naval blockade on Iranian ports, while Iranian state media reported that the strait would be managed under "Iranian arrangements" moving forward.[2][3]

The human toll of the maritime closure has been staggering. An estimated 1,000 commercial ships and 20,000 seafarers have been trapped in the Arabian Gulf for over 100 days, caught in the crossfire of naval strikes and mine deployments.[6]

The International Maritime Organization (IMO) and the International Chamber of Shipping (ICS) welcomed the ceasefire, but cautioned that evacuating the stranded crews will require immense logistical coordination and time.[5][6]

Before commercial traffic can resume at scale, the strait must be painstakingly cleared of naval mines. Trump indicated the waterway would open initially "for purposes of mine removal," a perilous operation that the U.K. government has already offered to support.[2][5][8]

Beyond the immediate maritime crisis, the 60-day MoU serves as a ticking clock for the war's most intractable issue: Iran's nuclear program.[3][4]

Under the preliminary terms, Iran has agreed to maintain the nuclear status quo—halting further uranium enrichment and freezing the expansion of its nuclear facilities—while diplomats attempt to hammer out a permanent accord.[4]

U.S. officials assert the final agreement will require the dismantling of Iran's highly enriched uranium stockpile, while Iranian officials maintain they have secured relief from crippling U.S. sanctions and the release of frozen assets without surrendering their civilian nuclear rights.[4][7]

Global markets reacted swiftly to the news of the truce. Asian shipping stocks rallied and oil prices dropped overnight as traders priced in the eventual return of Middle Eastern crude to the global market.[2][8]

However, shipping analysts warn that a return to normal navigation will be gradual. Major shipping companies, already scarred by the ongoing Red Sea crisis, are awaiting clear security guarantees and lower insurance premiums before committing new vessels to the region.[6][8]

The diplomatic breakthrough also leaves Israel in a complex position. While the agreement halts the broader regional war, Israeli media reports indicate Prime Minister Benjamin Netanyahu informed the U.S. that Israel is not a direct party to the bilateral Washington-Tehran pact.[4][7]

As the Friday signing approaches, the world watches to see if the fragile truce can hold. The next two months will test whether a temporary cessation of hostilities can be converted into a durable geopolitical settlement, or if the region will slip back into a conflict that has already reshaped global trade.[2][3]