The United States and Iran have announced a historic agreement to end the war between the two nations. The deal also puts an end to the conflict between Israel and Iran, as well as Israeli strikes on Lebanon. Brokered by Pakistan and several Middle Eastern countries, the agreement includes the full reopening of the Strait of Hormuz.
Trump Announces the Deal
US President Donald Trump confirmed the agreement late Sunday on his Truth Social platform. “The deal with the Islamic Republic of Iran is now complete,” he declared. “Ships of the world, start your engines. Let the oil flow!”
Iran Confirms, Broader Talks Ahead
Iran’s Deputy Foreign Minister, Kazem Gharibabadi, also confirmed the deal but noted that a broader agreement covering sanctions relief for Iran would be negotiated during the first 60 days of the current deal.
Signing Ceremony Set for Switzerland
Pakistan’s Prime Minister, Shehbaz Sharif, stated that the deal is scheduled to be signed on Friday in Switzerland, although President Trump had earlier indicated the signing would take place on Sunday.
Background of the Conflict
The war began on 28 February when the US and Israel launched unprovoked strikes on Iran. Iran retaliated with strikes on Israel and US interests in the Gulf region. In response, Iran shut the Strait of Hormuz, through which approximately 20 percent of the world’s oil passes. The US then blockaded the strait, preventing any Iran-linked ships from passing. This disruption caused a global surge in crude oil prices, including in Nigeria.
Global Economic Impact
Many countries, including India, the Philippines, EU member states, and African nations, were forced to make economic adjustments as oil and its derivatives, such as aviation fuel, became scarce or expensive.
Reopening of the Strait of Hormuz
Under the new agreement, both parties confirmed that the Strait of Hormuz will be reopened to all shipping. However, this process is expected to take several days to allow for the removal or destruction of mines that Iran may have placed in parts of the strait.
Oil Prices Expected to Stabilize
The deal is anticipated to eventually reduce crude oil prices to around the $70 mark, the level before the war began. During the conflict, prices soared above $100 per barrel.
