Trump and Iran Virtually Sign Historic Deal to End War and Reopen Strait of Hormuz
The U.S. and Iran have reached a breakthrough agreement to end their three-month war, reopen the Strait of Hormuz, and lift naval blockades that devastated global oil markets. President Trump and Vice President JD Vance virtually signed the framework deal on June 15, with a formal signing ceremony scheduled for Friday in Switzerland.
Major Global Economic Impact
President Donald Trump and Vice President JD Vance virtually signed the agreement to end a US blockade of Iranian ports, reopen the Strait of Hormuz and start 60 days of nuclear negotiations, with Parliament Speaker Mohammad Bagher Ghalibaf signing for Iran. The United States and Iran have reached a deal aimed at ending the war that will reopen the Strait of Hormuz and lift the American naval blockade.
Market Response and Oil Prices
Global markets soared after the tentative deal was announced, while oil prices fell more than $4 a barrel on the news that shipping may soon be restored through the key trade route. Oil prices settled at their lowest level since early March and the Dow clinched a record high Monday. Markets greeted the news with a rally in stocks, with the S&P 500 up 1.9%, and oil prices dropping by almost 5%.
Implementation Timeline
A signing ceremony is set for Friday in Switzerland, mediator Pakistan said. The US military has received a directive to lift the US blockade in the Strait of Hormuz on Friday pending the agreement with Iran is signed. Vice President JD Vance said this morning that the Strait of Hormuz will be toll free.
Regional Reactions and Remaining Concerns
Prime Minister Benjamin Netanyahu, in his first comments on the US-Iran agreement, said he and Trump "do not always see eye to eye." Iranian President Masoud Pezeshkian said the framework with the US represents an important step toward ending the war and beginning negotiations, but he stressed that a final agreement has not yet been completed. The deal is a major breakthrough in the conflict that set the Middle East aflame and shook the global economy. However, it did not resolve critical issues set aside for further negotiations.