Iran and US agree deal to end war; Trump says Strait of Hormuz will be reopened

A tentative peace agreement has reportedly been reached between Iran and the United States, aiming to conclude a prolonged conflict. The deal, announced by former President Donald Trump and confirmed by Pakistani Prime Minister Shehbaz Sharif, signifies a significant diplomatic breakthrough following months of hostilities. While a formal signing is anticipated later this week in Switzerland, the immediate effect is expected to be a cessation of military operations across all fronts, including in Lebanon.

Crucially, the agreement entails the immediate reopening of the strategically vital Strait of Hormuz, a key maritime chokepoint through which approximately one-fifth of the world's oil supply normally passes. President Trump has authorized the lifting of the U.S. naval blockade, aiming to restore unimpeded shipping and mitigate disruptions that have significantly impacted global energy markets.

Global financial markets have responded positively to the news of the impending peace, with oil prices seeing a notable decline and major stock indices recording gains. This optimistic reaction reflects hopes that the de-escalation of tensions will alleviate inflationary pressures and bring greater stability to international trade and energy supplies.