Washington and Tehran Agree in Principle to Extend Truce and Reopen Strait of Hormuz

The United States and Iran have reached an agreement in principle to extend the ceasefire and reopen the Strait of Hormuz to international maritime traffic, according to sources familiar with the negotiations. The formal agreement is expected to be signed in Geneva in the near future, in a step observers have described as a turning point in relations between the two countries.

According to reports, the terms of the preliminary agreement include a commitment to extend the existing truce and allow oil tankers and commercial vessels to pass through the strategic strait, through which approximately 20% of global oil supplies flow. Sources noted that both sides agreed on monitoring and verification mechanisms under international supervision, without disclosing full details of the security arrangements.

Global markets are reacting cautiously to these developments, with oil prices remaining elevated above $105 per barrel according to reports, amid skepticism from some analysts regarding the agreement's ability to withstand domestic political challenges in both countries. Reports indicated that Tehran linked the implementation of the agreement to modifications in Israeli military operations in Lebanon, complicating the path to a settlement.

This agreement in principle comes amid intense diplomatic efforts led by several mediator countries seeking to de-escalate tensions in the Gulf region, which had intensified over recent months. Markets are closely monitoring the progress of negotiations, with expectations that any lasting de-escalation could contribute to a tangible reduction in global energy prices.