Peace Agreement
U.S. and Iran Agree to End the War
The US and Iran have agreed on a memorandum of understanding to end their war. This was announced by Pakistan, the mediating country. “Let the oil flow,” US President Donald Trump confirmed the deal shortly thereafter, along with the accompanying reopening of the Strait of Hormuz. Iran sees itself “as the victor” and announced an immediate end to all attacks. The oil market reacted immediately ...
“Following intensive talks, we are pleased to announce that the peace agreement between the United States of America and the Islamic Republic of Iran has been reached,” Pakistani Prime Minister Shehbaz Sharif announced on Sunday evening on the X platform.
“Let the oil flow”
Shortly thereafter, confirmation came from the White House—from President Donald Trump himself, also via social media: “The agreement with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll-free opening of the Strait of Hormuz and simultaneously approve the immediate lifting of the United States’ naval blockade. Ships of the world, start your engines. Let the oil flow!”
The Iranian Deputy Foreign Minister then announced an immediate and permanent end to the war and military operations on various fronts, including in Lebanon. He declared Iran the victor in the war that had been raging for more than three months. The U.S. and Israel, on the other hand, had failed to achieve their war aims.
Oil markets reacted immediately
Oil prices reacted immediately following the statement and confirmations: Brent crude fell by $3.51 per barrel, or 4.02 percent, to $83.82, while U.S. West Texas Intermediate crude oil cost $80.95, a drop of $3.93, or 4.63 percent.
In a series of meetings over the coming days, representatives from the U.S. and Iran are now set to lay “the groundwork for technical talks.” No further details regarding the content of the agreement were initially disclosed.
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