US-Iran Sign Preliminary Deal, Hormuz Reopens
The US and Iran have signed a preliminary agreement to end the war and reopen the Strait of Hormuz, although a deal on Tehran's nuclear program remains to be negotiated. US President Donald Trump signed the memorandum of understanding during a dinner at the Palace of Versailles, France, on Wednesday (June 16), ahead of the planned formal ceremony in Switzerland on Friday (June 19).
The document was also signed by Iranian President Masoud Pezeshkian on behalf of Tehran. The agreement is said to be immediately effective and includes a permanent cessation of hostilities between the US and Iran. However, Trump has warned that attacks on Iran could resume if the deal is not implemented as Washington expects.
The agreement also sets a 60-day deadline for negotiations on Iran's nuclear program. Talks are scheduled to take place in Switzerland from Friday to Sunday. This issue remains highly sensitive as the US seeks to limit Iran's nuclear capabilities, while Tehran insists its nuclear program is peaceful.
The full text of the memorandum has not been released by the White House, so some details remain unclear. However, circulating drafts indicate the agreement includes the reopening of the Strait of Hormuz, a vital waterway for about a fifth of global oil and liquefied natural gas trade. The waterway will be open tariff-free for two months, although potential future charges have not been fully eliminated.
As part of the deal, the US is said to waive some sanctions on Iran. A $300 billion reconstruction fund for Iran will also be established, although Trump has confirmed the US will not contribute to the fund.
For the energy market, the reopening of Hormuz is a key factor as it could help restore supply flows and ease pressure on oil prices. However, several countries are still reviewing their energy strategies as the risk of Iran re-closing the waterway has not been completely eliminated.
The agreement also reaffirms Lebanon's territorial integrity. This issue is crucial because the US-allied Israeli offensive against Iran-backed Hezbollah in Lebanon has been a major obstacle to peace talks. The focus will now be on nuclear negotiations, the implementation of the Hormuz reopening, and the longevity of this initial agreement. (arl)
Source: Newsmaker.id
