Iran‑US ceasefire pact set to reopen Strait of Hormuz and lift sanctions

The United States and Iran are close to signing a tentative memorandum of understanding that will end the month‑long war and be formalised at a ceremony in Geneva. The agreement calls for the immediate reopening of the Strait of Hormuz, allowing Iran to sell its oil without restrictions, and for the United States to mobilise at least $300 billion to rebuild Iran once a final nuclear‑program deal is reached. It also envisions the gradual removal of all U.S. and United Nations sanctions on Tehran.

The deal includes provisions to end hostilities in Lebanon between Israel and the Iran‑backed Hezbollah militia, a contentious point as Israel has not signed the agreement and continues to occupy parts of southern Lebanon. Iranian Foreign Minister Abbas Araghchi has said Iran will emerge as the “winner” of the war and that Israeli forces must withdraw for a complete end to the conflict.

The war has inflicted thousands of deaths across the Middle East and driven up global energy prices, costing U.S. consumers an estimated $132 billion in higher gasoline, diesel, fertilizer and mortgage rates. Reopening the strait is expected to ease oil market pressures worldwide and provide relief to the global economy.