US and Iran Sign Preliminary Agreement to Halt War and Reopen Strait of Hormuz

The United States and Iran have reached a preliminary agreement to halt their months-long war, signing a Memorandum of Understanding that reopens the Strait of Hormuz and establishes a 60-day ceasefire. The diplomatic breakthrough, mediated by Pakistan, aims to end a conflict that began in late February and triggered a severe global energy crisis.[3][6]

The framework was signed electronically by US President Donald Trump, Vice President JD Vance, and Iranian Parliament Speaker Mohammad Bagher Ghalibaf. A formal signing ceremony is scheduled for Friday in Geneva, Switzerland. During the 60-day pause, negotiators will attempt to forge a permanent treaty addressing Iran's nuclear program and regional security.[4][5]

The most immediate global impact of the accord is the unblocking of the Strait of Hormuz, a critical maritime chokepoint. President Trump announced that the waterway would open "toll-free" and authorized the immediate lifting of the US naval blockade on Iranian ports. In response to the news, Brent crude prices dropped more than 5 percent, and global stock markets rallied.[6][7]

Despite Trump's assertions on social media that oil tankers are already moving through the strait, international shipping associations remain highly cautious. The waterway has been heavily mined during the conflict, and the agreement outlines a 30-day period for Iranian forces to clear the explosives before commercial transit can fully normalize.[4][6]

Almost immediately after the announcement, starkly conflicting narratives emerged regarding the deal's specific terms. US officials insist that the Strait of Hormuz will remain permanently toll-free and that none of Iran's frozen financial assets will be released until Tehran demonstrates verifiable compliance with nuclear restrictions.[5][7]

Conversely, Iran's Islamic Revolutionary Guard Corps (IRGC) and state media claim that half of the country's $24 billion in frozen funds will be released upfront. Iranian officials also assert that Tehran and Oman will retain sovereignty over the strait and plan to collect transit fees once the 60-day negotiation window concludes.[5][8]

The most volatile complication to the US-Iran pact is the ongoing war in Lebanon. The memorandum declares a permanent end to hostilities on all fronts, prompting a wave of displaced Lebanese civilians to begin returning to the southern border region under the assumption that the fighting had ceased.[1][3]

However, Israel is not a signatory to the agreement and has flatly rejected its terms regarding Lebanon. Israeli Defense Minister Israel Katz and National Security Minister Itamar Ben-Gvir stated that the Israel Defense Forces will not withdraw from southern Lebanon and will continue their military campaign against the Iranian-backed militant group Hezbollah.[3][4][5]

US officials acknowledge that the ceasefire is not one-sided; they noted that if Iran cannot control Hezbollah and attacks on Israeli positions continue, Israel retains the right to defend itself. This dynamic leaves the broader peace framework highly vulnerable to collapse if cross-border violence escalates before Friday's formal signing.[4]

For now, the 60-day window offers a crucial diplomatic pause. US officials state that Iran has agreed to freeze its uranium enrichment and maintain the current status of its nuclear facilities while technical discussions, led by Vice President Vance, commence this week. European leaders have broadly welcomed the pact, urging swift implementation to stabilize the Middle East and the global economy.[4][6]