The United States and Iran have agreed to end their war. Oil prices fell sharply on the news that the preliminary pact will reopen the Strait of Hormuz. The agreement marks a major breakthrough after months of intense conflict.
US President Donald Trump confirmed the deal, in a post on his Truth Social platform on Sunday. Pakistani Prime Minister Shehbaz Sharif also confirmed the pact. The memorandum of understanding will be signed in Switzerland on Friday.
The deal calls for immediate termination of military operations. This includes all fronts such as Lebanon. Iranian officials said war would end permanently Monday night. However, Israeli Defence Minister Israel Katz said Israeli forces would remain in security zones in Lebanon, Syria and Gaza.
As Trump ordered an end to the US blockade, brent crude futures fell four per cent. Asian stock markets jumped on the positive news.
Further negotiations will address thorny issues. These include the fate of Iran’s nuclear programme. Sanctions relief for Iran is also under discussion. A 60-day ceasefire period will allow for these talks.
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Image via NBC News.
