Donald Trump, United States president said on Sunday that the US and Iran had reached a ceasefire agreement that would reopen the Strait of Hormuz, a vital shipping lane through which about a fifth of the world’s oil and gas supplies pass.
Trump announced that the deal was complete and authorised the lifting of a US naval blockade that had disrupted commercial shipping through the strategic waterway during months of conflict between Washington and Tehran.
“The Deal with the Islamic Republic of Iran is now complete,” Trump wrote on Truth Social, adding, “Ships of the World, start your engines. Let the oil flow!”
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Iran’s deputy foreign minister also confirmed the agreement, which is expected to be formally signed on Friday in Switzerland after mediation efforts led by Pakistan and supported by regional actors.
The breakthrough comes after more than three months of conflict that disrupted shipping through the Strait of Hormuz and pushed oil prices sharply higher amid fears over global energy supplies. The waterway normally carries roughly 20 percent of global oil and liquefied natural gas trade.
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Details emerging from the draft agreement indicate that Iran would freeze further advances in its nuclear programme while broader negotiations continue. In return, the United States is expected to provide sanctions relief and release billions of dollars in frozen Iranian assets.
The announcement was welcomed by energy markets, with traders betting that the reopening of the Strait of Hormuz would ease supply concerns and reduce pressure on global oil prices.
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