The United States and Iran have announced a tentative agreement aimed at ending more than 100 days of conflict, with both sides outlining a framework that would immediately halt military operations and reopen the Strait of Hormuz.
U.S. President Donald Trump described the arrangement as a “great deal,” while Pakistani Prime Minister Shehbaz Sharif said the memorandum is scheduled to be signed in Switzerland on Friday.
Iran’s Supreme National Security Council said military operations on all fronts, including Lebanon, would end immediately and permanently, alongside the lifting of the U.S. naval blockade on Iranian ports.
The announcement triggered a positive reaction in financial markets, with oil prices falling sharply and stock markets advancing amid expectations that energy shipments through the Gulf will gradually resume.
Despite the breakthrough, uncertainty remains over whether Israel will fully adhere to the agreement.
Iran has said the framework includes a ceasefire in Lebanon, where fighting linked to the wider conflict has displaced more than a million people and caused extensive casualties.
However, Israeli Defence Minister Israel Katz said Israel intends to maintain forces in security zones in Lebanon, Syria and Gaza for an unlimited period.
Recent Israeli strikes on Beirut’s southern suburbs also highlighted tensions surrounding the agreement, with reports indicating the attacks briefly delayed the deal’s finalisation.
Analysts and political observers have warned that Lebanon could become the most fragile element of the arrangement, particularly if disagreements persist over Israeli troop deployments and Hezbollah’s role.
The agreement leaves several major issues unresolved and shifts them into a proposed 60-day negotiating period.
Future talks are expected to address Iran’s nuclear programme, sanctions relief, frozen Iranian assets and broader regional security concerns.
According to Iranian officials, discussions concerning Tehran’s missile programme and support for allied groups were removed from the current negotiating agenda, though this has not been independently confirmed.
The reopening of the Strait of Hormuz is expected to begin with mine-clearing operations before commercial shipping fully resumes.
Iran and the United States also differ on the future of Iran’s enriched uranium stockpile, while European powers have linked potential sanctions relief to verifiable limits on Tehran’s nuclear activities.
Although markets welcomed the announcement, economists cautioned that damage to energy infrastructure and supply chains across the Gulf could continue affecting global commerce for months.