U.S. and Iran extend ceasefire, reopen Strait of Hormuz
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- U.S. and Iran agreed to a framework extending their ceasefire for 60 days, with a formal signing ceremony expected Friday in Switzerland and nuclear talks to follow
- Pakistani Prime Minister Shehbaz Sharif announced the deal Sunday after 107 days of war, with mediation by Pakistan and Qatar, and said both sides declared 'immediate and permanent termination of military operations on all fronts, including in Lebanon'
- President Trump said the U.S. would lift its naval blockade and authorized the 'toll free opening of the Strait of Hormuz,' but conditioned reopening on Friday's signing 'for purposes of mine removal'
- Iran's Supreme National Security Council said the war 'will end immediately and permanently beginning tonight,' and deputy foreign minister Kazem Gharibabadi said revisions to the MOU text were accepted after Sunday's escalation, crediting armed forces threats with 'helping facilitate progress'
- The Strait of Hormuz handled about 20% of global oil and liquefied natural gas before the war, but mine-clearing and infrastructure repairs mean a full return to pre-war shipping volumes may not happen immediately
- The 60-day window is reserved for negotiating Iran's nuclear enrichment and disposal of its highly enriched uranium, with U.S. sanctions relief and release of frozen Iranian funds tied to Tehran's compliance
Why it matters: Reopening the Strait of Hormuz — a chokepoint for roughly 20% of global oil and LNG — could relieve pressure on global energy markets, but the 60-day clock leaves an enormous technical task: down-blending Iran's highly enriched uranium and freezing/monitoring its nuclear program. Sanctions relief and access to frozen funds give Iran a reason to comply, while hawks in the U.S. and Israel warn a final deal may never materialize.
