US Lifts Naval Blockade on Iran as Peace Deal Sparks Bitter Rift with Israel

The United States and Iran have officially enacted a Memorandum of Understanding (MoU) to end a devastating, nearly four-month-long war, triggering the immediate lifting of a US naval blockade on Iranian ports. The breakthrough agreement, which took effect this week, reopens the critical Strait of Hormuz to global shipping, providing immediate relief to international energy markets that had been choked by the conflict. The deal marks a sudden de-escalation of hostilities that began in late February when the US and Israel launched a joint military campaign against Tehran.[1][2]

Mediated by Pakistani Prime Minister Shehbaz Sharif, the interim agreement establishes a 60-day negotiating window intended to address Iran's nuclear program and broader regional security architecture. Following the signing of the document by US President Donald Trump and Iranian officials, US Central Command (CENTCOM) confirmed that all military blockade enforcement efforts had officially ceased. CENTCOM announced that commercial vessels are now permitted to transit freely into and out of Iranian coastal areas, fulfilling a primary condition set by Tehran for halting military operations.[2][5]

The immediate economic impact of the reopened maritime corridor was swift and substantial. Vice President JD Vance reported that 12.5 million barrels of oil flowed through the Strait of Hormuz on Wednesday night alone, marking the highest volume of energy transit since the conflict erupted. Iranian officials celebrated the lifting of the blockade, framing it as a major diplomatic victory. Iranian Deputy Foreign Minister Majid Takht-Ravanchi emphasized that securing the reopening of their ports and the resumption of oil exports prior to the formal signing ceremony in Switzerland was a non-negotiable demand that Washington was forced to accept.[6][7]

However, the diplomatic breakthrough has ignited an unprecedented and bitterly public rift between the United States and Israel. Israeli officials, who closely coordinated the initial military campaign with Washington, have fiercely criticized the MoU. Across the Israeli political spectrum, leaders argue the agreement is a premature capitulation that fails to dismantle Iran's nuclear and ballistic missile capabilities. Furthermore, Israeli hardliners, including National Security Minister Itamar Ben-Gvir, contend the deal unfairly constrains Israel's ongoing military operations against the Iran-backed Hezbollah militia in Lebanon, effectively leaving Israel vulnerable to proxy attacks.[1][3][7]

In a blistering rebuke delivered from the White House briefing room, Vice President Vance lashed out at the Israeli cabinet, accusing them of a 'weird panic' and 'freakout' over the peace agreement. Vance warned Israeli leaders that they need to 'wake up and smell the reality' regarding their deep international isolation. The vice president's remarks represent one of the sharpest public condemnations of Israel by a sitting US administration in recent history, underscoring the administration's frustration with Israel's refusal to fall in line with the broader regional de-escalation strategy.[1][7]

If I was in the cabinet of the Israeli government, I might not be attacking the only powerful ally that I have anywhere left in the entire world, Vance told reporters, extending a string of pugnacious statements directed at Jerusalem. He pointedly reminded critics that two-thirds of the defensive weapons that protected Israel during the four-month conflict were built by American hands and paid for by American taxpayers. Vance insisted that Donald Trump remains the only head of state globally who is sympathetic to Israel's current strategic predicament.[1][3]

Despite the intense pressure from Washington, Israel signaled it would not fully comply with the ceasefire's broader regional terms, which Iran and the US stated should apply to all fronts. Prime Minister Benjamin Netanyahu stated that the Israeli military would maintain a security zone in southern Lebanon 'as long as Israel's security needs require it.' Defying the spirit of the MoU, the Israel Defense Forces published maps showing an expanded control zone in Lebanon and continued to execute drone strikes in Gaza, threatening the fragility of the entire peace framework.[2][3][7]

While the United States has rapidly eased its military posture to secure the ceasefire, the European Union is maintaining a strict economic line against Tehran. European Commission Vice-President Kaja Kallas stated on Thursday that any discussion of lifting EU sanctions on Iran is 'premature.' Speaking ahead of an EU leaders' summit, Kallas clarified that while member states will eventually discuss sanctions relief, the current environment does not warrant an immediate rollback of the economic restrictions that have crippled the Iranian economy for years.[4][8]

Kallas emphasized that European sanctions relief will only be considered if the upcoming 60-day negotiating window yields a comprehensive, verifiable agreement regarding the disposition of Iran's enriched uranium stockpile. The EU currently sanctions over 700 Iranian individuals and entities for activities related to nuclear proliferation, human rights abuses, and regional proxy support. Underscoring the West's dual-track approach, the US Treasury Department simultaneously announced new sanctions targeting Hezbollah's financial networks in Lebanon, Syria, and Iraq, demonstrating that pressure on Iran's proxies will continue even as the direct war ends.[4][8]

The next two months represent a high-stakes diplomatic tightrope for all parties involved. Negotiators must forge a permanent framework to neutralize Iran's nuclear ambitions without triggering a collapse of the interim truce. They must accomplish this while navigating Israel's open defiance of the deal's parameters and managing the fragile reopening of global energy arteries. If the 60-day talks fail to produce a binding treaty, the region risks plunging back into a devastating conflict, but for now, the guns have silenced and the oil has begun to flow.[3][4][5]