Ships stranded in the Persian Gulf have started moving toward the Strait of Hormuz in anticipation of reopening
The United States and Iran have reached a preliminary agreement that could ease tensions and help wind down the Middle East war.
President Donald Trump said the two sides had “largely negotiated” a memorandum linked to peace, but he also instructed US negotiators not to rush the final agreement.
Iranian leaders have not publicly confirmed the details, and officials from both countries described the arrangement as an initial framework for future talks.
Under the proposed deal,
- Iran would fully reopen the Strait of Hormuz, a key global oil shipping route, while the US lifts restrictions on Iranian shipments and offers limited economic relief.
- Mediators said the agreement would also extend the current ceasefire for at least 60 days as both sides begin negotiations over Tehran’s nuclear program.
Meanwhile, ships stranded in the Persian Gulf have started moving toward the strait in anticipation of reopening.
The possible deal comes after weeks of rising tensions, military threats, and intense negotiations following the conflict that erupted in February between Iran, Israel, and the United States. The war has killed thousands and shaken global energy markets.
Critics in both Washington and Israel questioned whether Iran would honor any agreement.
Oil prices fell on Monday, hitting two-week lows. Brent crude dropped 4.9% to $98.45 a barrel, while US West Texas Intermediate crude fell 5.4% to $91.38.
The fall in crude prices also pushed the US dollar down. The euro, British pound, Australian dollar, and New Zealand dollar all gained, while the dollar index fell 0.2% to 99.059.
Markets stayed cautious as damaged energy facilities may take months to recover. US energy firms increased oil and gas rigs for a fifth straight week.