US Announce Peace Deal With Iran, Plan To Reopen Strait Of Hormuz

The United States and Iran said they have reached an agreement to end the Middle East war, and reopen the Strait of Hormuz, one of the world’s most important oil shipping routes.

However, there are still few details about how the two countries will resolve the sensitive issue of Iran’s nuclear programme.

US officials and Pakistan confirmed that the agreement is expected to be signed in Switzerland on Friday.

If completed, it would mark a major step toward ending months of fighting that have killed thousands of people and disrupted global energy markets.

President Donald Trump announced that the deal had been finalised in a social media post on Sunday, which coincided with his 80th birthday.

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“The Deal with the Islamic Republic of Iran is now complete. Ships of the World, start your engines. Let the oil flow!” Trump wrote.

Iran’s Deputy Foreign Minister Kazem Gharibabadi confirmed the development, saying the agreement would immediately end the war between the two countries.

He added that both sides would begin fresh negotiations within two months in an effort to reach a permanent settlement.

Earlier on Sunday, tensions had appeared to rise after Iran threatened to respond to an Israeli strike on Hezbollah positions in Beirut’s southern suburbs.

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The attack raised concerns that the planned agreement could collapse.

Later in the day, Pakistani Prime Minister Shehbaz Sharif announced that both sides had agreed to permanently stop military operations on every front, including Lebanon.

He also thanked Qatar, Saudi Arabia and Turkey for helping mediate the negotiations.

Although both governments have confirmed the agreement, many of its terms have not been made public.

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Iran’s Mehr news agency reported that Washington would release $12 billion in frozen Iranian assets before formal negotiations begin.

The agency also claimed that a 14-point memorandum of understanding would allow another $24 billion in frozen assets to be released during a 60-day negotiation period after the agreement is signed.

One of the biggest unresolved issues remains Iran’s nuclear programme.

The US continues to push for limits on Tehran’s uranium enrichment activities and wants to address its stockpile of highly enriched uranium, which officials believe was buried following US airstrikes last year.

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In an interview with “The New York Times”, Trump said discussions were continuing over how long Iran should suspend uranium enrichment.

He said the US was seeking a 20-year suspension but suggested a 15-year pause could also be considered, while declining to discuss the negotiations in detail.

The announcement was welcomed by world leaders, who expressed hope that it could bring lasting peace to the region.

Financial markets reacted positively as Oil prices fell by over four percent in Tokyo on Monday, while Japan’s Nikkei stock index gained about three percent.

The Strait of Hormuz is a vital route for global oil exports. Any disruption there affects fuel prices worldwide and can increase inflation while slowing the movement of essential goods, including fertiliser used in food production.

ALSO READ: Iran Closes Strait Of Hormuz Again, Accuses US Of ‘Sea Robbery’

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