US and Iran Sign Preliminary Deal to End 110-Day Conflict and Reopen Strait of Hormuz

President Donald Trump has signed a preliminary 14-point agreement with Iran aimed at ending a devastating 110-day military conflict that fundamentally disrupted global trade and security. The memorandum of understanding, heavily mediated by Pakistani Prime Minister Shehbaz Sharif, establishes an immediate ceasefire across all military fronts and creates a high-stakes 60-day window for both nations to negotiate a comprehensive final treaty. The sudden diplomatic breakthrough follows months of escalating violence that began with US-Israeli strikes in late February, culminating in a total shutdown of vital Middle Eastern shipping lanes. By signing the document, both Washington and Tehran have committed to a fragile de-escalation process that immediately halts combat operations, though officials on both sides acknowledge that the hardest diplomatic work lies ahead in the coming two months.[1][5][6]

The immediate economic centerpiece of the preliminary deal is the unblocking of the Strait of Hormuz, a critical maritime chokepoint that historically handles roughly 20% of the world's daily oil supply. Under the terms dictated by US officials, Iran will allow toll-free commercial shipping through the strait for the next 60 days, while the United States has committed to lifting its naval blockade of Iranian ports within 30 days. The closure of the strait had sent shockwaves through global energy markets, and its reopening is viewed as a massive relief for the international economy. "Ships of the World, start your engines. Let the oil flow!" President Trump posted on Truth Social, celebrating the agreement as a major victory that averts a worldwide economic depression.[5][6]

In exchange for reopening the vital waterway and halting military hostilities, Washington has agreed to immediately waive crippling sanctions on Iranian oil sales, allowing Tehran to freely export crude on the global market for the first time in months. This represents a massive economic concession from the United States, providing the Iranian economy with an immediate and lucrative lifeline. Furthermore, the US has committed to eventually releasing billions of dollars in frozen Iranian assets held abroad, though American officials emphasize that those specific funds will only be unfrozen once Iran fully implements the terms of the final, long-term agreement. Iranian state media has already celebrated the sanctions relief as a humiliating defeat for Western economic pressure campaigns.[4][5][7]

The global economic toll of the 110-day closure has been severe, driving up energy costs, disrupting supply chains, and threatening a worldwide recession. The ripple effects of the conflict were starkly evident on Wednesday when the Bank of England announced it would hold its benchmark interest rate steady at 3.75%. British policymakers explicitly cited the inflationary pressures caused by the Hormuz closure as a primary headwind against economic growth, noting that higher energy costs have consistently undershot inflation forecasts and slowed recovery efforts. Financial markets rallied slightly on the news of the MOU, but central banks worldwide remain cautious, waiting to see if the physical flow of oil actually resumes at pre-war volumes before adjusting their long-term monetary strategies.[3][6]

Beyond maritime security and economic relief, the memorandum of understanding mandates an "immediate and permanent termination of military operations" by both nations and their respective regional proxies. Crucially, the text explicitly includes Lebanon in the ceasefire zone, effectively requiring Tehran to rein in Hezbollah forces that are currently engaged in intense combat with Israel. While the agreement demands a halt to Iranian-backed operations in the Levant, senior US officials were quick to clarify that Israel—which is not a signatory to the MOU—retains the absolute right to defend itself and strike back if Hezbollah launches further attacks. This dynamic introduces a volatile wildcard into the peace process, as continued Israeli-Hezbollah clashes could easily derail the broader US-Iran de-escalation.[5][6]

The nuclear component of the preliminary deal remains a significant flashpoint and a source of deep anxiety among non-proliferation experts. The current text requires Iran to formally reaffirm that it will not procure or develop nuclear weapons, and mandates that Tehran down-blend its existing stockpile of highly enriched uranium on-site. However, the agreement deliberately delays the most difficult and complex negotiations over Iran's broader nuclear infrastructure—including the use of advanced centrifuges and the role of International Atomic Energy Agency inspectors—to the 60-day window. By separating the immediate maritime crisis from the long-term nuclear threat, the US administration has secured a quick end to the shooting war, but left the ultimate fate of Iran's atomic ambitions entirely unresolved.[4][5][6]

Critics of the administration's diplomatic strategy argue that the framework heavily favors Tehran, granting the Islamic Republic immediate, tangible rewards in exchange for easily reversible promises. Foreign policy analysts note that Iran is receiving an immediate economic lifeline through unfettered oil sales while deferring its most significant and permanent concessions. Elliott Abrams, a former US special representative for Iran, warned that the deal effectively allows Iran to maintain substantial uranium enrichment capabilities and fails to permanently dismantle its nuclear program. Skeptics fear that once Iran reaps the financial benefits of the 60-day oil waiver, it will have little incentive to sign a restrictive final treaty, leaving the US with diminished leverage.[4][6]

The durability of the toll-free passage through the Strait of Hormuz is also highly contested, exposing a major discrepancy in how the two nations are selling the deal to their domestic audiences. While President Trump has publicly stated that the vital waterway will be "permanently toll-free," the written memorandum of understanding only guarantees free passage for the initial 60-day period. Iran's parliamentary speaker, Mohammad Bagher Ghalibaf, forcefully contradicted the American narrative on state television, stating that Tehran fully intends to charge commercial shipping fees once the initial window expires. Ghalibaf asserted that the strait "will not return to pre-war conditions" and emphasized Iran's sovereign right to extract tolls, setting the stage for a massive diplomatic clash in two months.[5][6]

A formal signing ceremony for the memorandum of understanding is scheduled to take place on Friday in Geneva, Switzerland, with Vice President JD Vance and senior Iranian officials expected to attend. The ceremony will officially start the 60-day countdown clock for negotiators to hammer out a permanent, UN-backed resolution. If the two sides fail to reach a comprehensive agreement within that tight timeframe, US officials have warned they are fully prepared to walk away and reinstate severe economic and military pressure. With both nations retaining the right to abandon the framework at any moment, the Middle East enters a precarious two-month period of diplomatic brinkmanship, where the slightest miscalculation could instantly reignite the devastating conflict.[5][6][7]