US and Iran agree to cease hostilities and reopen Strait of Hormuz
The United States and Iran said they will sign a memorandum in Switzerland to end fighting and lift the blockade of the Strait of Hormuz, prompting market reactions and mixed responses from regional leaders.
Washington and Tehran announced that they will sign a memorandum of understanding on Friday in Switzerland that calls for an immediate end to hostilities and the reopening of the Strait of Hormuz without tolls. The agreement, whose full text has not been released, also includes a 60-day period for further negotiations on issues such as sanctions waivers, frozen Iranian assets and monitoring of Iran’s nuclear program.
"We will not compromise on Israel’s supreme security interests or the protection of our citizens, and we will not withdraw from the security zones," Israeli Defense Minister Israel Katz said in a statement, reiterating Israel’s position on its forces in Lebanon, Syria and Gaza.
"Freedom of navigation must be restored toll-free. This is essential for regional stability and the global economy," European Commission President Ursula von der Leyen said, welcoming the agreement.
Oil markets responded to the news, with Brent crude falling about 5% to $83 a barrel and U.S. West Texas Intermediate dropping to $80 a barrel, though prices remain above pre-conflict levels. Maritime analysts described industry reaction as cautious, noting that insurers still view the situation as uncertain.
Experts said the memorandum leaves major issues unresolved, including Iran’s uranium enrichment, ballistic-missile program and the activities of proxy groups such as Hezbollah. They described the deal as an initial step that will likely lead to more complex negotiations.
Regional leaders offered varied comments. Pakistan’s prime minister said the deal includes an immediate and permanent end to fighting on all fronts, including Lebanon. Turkey’s president emphasized the need to avoid rhetoric that could raise tensions. Israel’s far-right security minister warned the agreement does not bind Israel, while other Israeli politicians criticized the process as being conducted without their input.
The United States indicated that its military has received orders to lift the blockade of Iranian ports once the memorandum is signed, and President Donald Trump said the United States will ensure that Iran cannot acquire a nuclear weapon.
The agreement arrives as the Group of Seven summit begins in France, where leaders are expected to discuss how the European Union can support the next phase of implementation.
