US and Iran reach deal to halt war, reopen Strait of Hormuz

The United States and Iran said on Sunday they had reached a framework agreement to end months of conflict, reopen the Strait of Hormuz to shipping, and lift the US naval blockade of Iranian ports. The announcement triggered an immediate slide in global oil prices.

Officials from both sides confirmed that a formal signing ceremony is scheduled for Friday in Geneva, Switzerland, where the agreement is expected to go into effect immediately. The deal marks the most significant diplomatic breakthrough between the two countries in years.

Oil markets react sharply
Brent crude futures dropped to their lowest level in three months within hours of the announcement, as traders priced in the prospect of uninterrupted tanker traffic through one of the world's most critical energy corridors. Roughly a fifth of global oil consumption passes through the strait.

"This is the moment the region has been waiting for. A reopened Hormuz means stability for energy markets and for everyone who depends on them." Conflicting accounts on next steps While both governments confirmed the broad outline of the framework, US and Iranian officials offered differing accounts of the sequencing of the blockade's lifting and the verification process that will accompany the reopening of Iranian ports.

Analysts caution that the coming days will be critical, as both sides move from a verbal framework to a binding text ahead of Friday's ceremony.