Strait of Hormuz deal: US-Iran agreement to end war and reopen shipping lanes

The United States and Iran have agreed to end the war and reopen the Strait of Hormuz. The move was expected to reduce pressure on the global economy. Full details were not released immediately. The signing was set for Friday in Switzerland. U.S. President Donald Trump confirmed the agreement and said the U.S. naval blockade would end.

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Donald Trump posted online, "Congratulations to all!\" and gave no further terms. Donald Trump also wrote, \"Ships of the World, start your engines. Let the oil flow!\" The U.S. had earlier said it would scale back the blockade as the strait reopened. The U.S. also signalled sanctions could ease to let Iran sell more oil.

Strait of Hormuz deal and global economy impact

The Strait of Hormuz carries major shipments of oil, natural gas, and related products. Fertiliser supplies also move through the waterway. Its effective closure shook the global economy. The conflict began more than three months earlier, and thousands of people were reported killed. The deal appeared to restore pre-war conditions, though Iran gained new leverage over shipping routes.

Iranian state TV aired a banner reading: \"US was forced to sign an agreement to end the war.\" Iran’s government did not issue an immediate statement. Iranian state media instead cited Pakistan’s announcement as key mediator. Pakistan said, \"Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon, Pakistan said, adding that mediators this week will facilitate meetings to lay the foundation for the technical talks.\"

Strait of Hormuz talks, Pakistan mediation and Israel concerns

Pakistan’s statement followed a tense day around the negotiations. Israel, which was not part of the talks, struck Beirut’s southern suburbs. The attacks came as Israel pursued the Iranian-backed Hezbollah. Reports said the strikes risked undermining the near-finished discussions. Iran had pushed for any ceasefire to cover Lebanon, where Israel expanded its invasion.

Iran also sought access to billions of dollars in frozen funds. The emerging deal faced criticism from Israel’s government and some Republicans in the United States. Critics said the terms did not improve on the 2015 Iran nuclear deal. Donald Trump left that deal during the first term and still calls it bad. The agreement drew criticism even in the final hours.

Strait of Hormuz ceasefire timeline and blockade steps

The war began on February 28 with U.S. and Israeli strikes. Those strikes killed Iran’s supreme leader, Ayatollah Ali Khamenei. Iran later attacked Israel and several Arab Gulf nations using missiles and drones. A ceasefire was reached on April 7. Ten days later, the U.S. military imposed a blockade on Iranian ports.

Tehran needed approval from its new leader to accept the deal. Ayatollah Ali Khamenei’s son became supreme leader, but was not seen publicly since the war began. Iran had repeated internal tensions during talks. Iran’s government warned that domestic division weakened its position. Iranian President Masoud Pezeshkian urged unity and called it a disgrace when someone labels negotiators traitors.

Strait of Hormuz agreement and Iran nuclear programme question

The central dispute over Iran’s nuclear programme remained unresolved. Tehran stressed the deal should end the war first. Iran wanted nuclear issues discussed later. The International Atomic Energy Agency said Iran held 440.9 kilograms, or 972 pounds, of uranium enriched up to 60% purity. That level was a short technical step from 90% weapons-grade.

Iran insisted its nuclear work was peaceful and did not commit to give up enriched uranium. The uranium was believed buried under three nuclear sites. Those sites were badly damaged by U.S. strikes last year. At times, the U.S. sought removal of the enriched uranium as part of any deal. Russia offered to take it, while Donald Trump sometimes said it should be destroyed.

A face-to-face meeting between Vice President JD Vance and Mohammad Bagher Qalibaf ended without a breakthrough. Donald Trump also alternated between threats and praise during negotiations. Donald Trump at times warned of destroying Iranian infrastructure, including its civilisation. Later, Donald Trump described dealings with Iran as more professional. Iran remained wary after earlier talks ended with U.S. and Israeli attacks.

Despite the agreement, key goals cited at the start of the war appeared unchanged. Iran still had a missile programme and support for armed proxies like Hezbollah. Iran also retained a stockpile of highly enriched uranium. The deal was expected to reopen the Strait of Hormuz and end the blockade. Further technical talks were expected to follow through mediation channels.

With inputs from PTI