Uncertainty continues to surround a newly signed U.S.-Iran interim agreement intended to bring an end to the ongoing Middle East conflict, as shipping companies warn it could take weeks before traffic through the Strait of Hormuz resumes, and major questions about the deal’s details remain open.
President Donald Trump announced Monday that a preliminary agreement had been reached and signed by both the United States and Iran. However, the specifics have not yet been released to the public, and both nations acknowledged that a permanent ceasefire still needs to be negotiated.
Under the interim arrangement, a fragile ceasefire that was first announced in April would be extended for another 60 days. The deal would also reopen the Strait of Hormuz, the narrow waterway between Iran and Oman that Iran has effectively shut down since the U.S. and Israel launched attacks on Iran back in February. That blockade cut off roughly one-fifth of the world’s oil supply.
During the 60-day negotiating window, talks would focus on the future of Iran’s nuclear program. Notably, two other issues that Trump and Israeli Prime Minister Benjamin Netanyahu cited as reasons for the war — ending Iran’s backing of armed proxy groups in the region and scaling back its missile capabilities — are not expected to be part of those discussions.
Trump made the announcement upon his arrival in France for a summit of the G7 group of major economies. “The deal’s all signed,” he said, adding that Vice President JD Vance would attend a formal signing ceremony in Geneva on Friday.
Oil prices dropped Monday to their lowest point since March 10, shortly after the Hormuz blockade began. By Tuesday, prices had stabilized somewhat, with Brent crude futures slipping 0.3% to $82.96 per barrel during Asian trading hours, reflecting a more cautious outlook among markets.
Despite the uncertainties, the agreement represents the most significant progress yet in resolving a conflict that has claimed at least 7,000 lives, the majority in Iran and Lebanon, while severely disrupting global energy markets.
Iranian President Masoud Pezeshkian took to social media Monday, calling the interim deal an “important step” toward halting the fighting, while also noting that a final agreement for a lasting peace “has yet to take shape.”
Vance described the signed document to CNN as a “very general document,” and U.S. officials indicated that more details would be made available over the following two days. Vance also mentioned the deal includes “a very significant sanctions relief package” for Iran, and told Fox News that Trump might choose to release the agreement before the Friday ceremony.
American and Iranian officials have indicated the deal could eventually bring major economic benefits to Iran, including lifted sanctions, the unfreezing of foreign assets, and access to a $300 billion reconstruction fund to be financed by neighboring Gulf states that host U.S. military bases.
U.S. officials, speaking without attribution, said Iran would need to meet American demands — specifically, a commitment never to develop a nuclear weapon and a cutoff of support for militias such as Hezbollah in Lebanon — before receiving those economic benefits. Iranian officials, who have consistently denied any intention to build a nuclear weapon, contend they have conceded little by agreeing to restart diplomatic discussions about uranium enrichment that were interrupted when the war began.
Even if the Strait of Hormuz reopens under the agreement, shipping industry leaders caution that cargo traffic will not resume immediately. The chief executive of Japan’s Mitsui O.S.K. Lines, a major shipping company operating a fleet of more than 900 vessels including tankers, told the Financial Times that shipowners would not sail through the strait until they were confident the deal was “material.”
“Given the experiences in the last couple of months, I think it’s reasonable to assume that it may take at least a couple of weeks or if not a month,” Tamura told the FT prior to Trump’s announcement. The FT reported that the finalization of the U.S.-Iran agreement had not changed Tamura’s position.
Iran has indicated it will maintain joint control over the strait with Oman. The U.S. stated the waterway would be open toll-free for 60 days and expects that provision to carry over into any final agreement. Trump posted on Truth Social that oil-laden ships were already beginning to move out of the strait along what he called the Southern “Highway,” which he described as “totally safe, secure, and pristine.”
The conflict between U.S. ally Israel and the Iran-backed Hezbollah militia in Lebanon remains a significant sticking point. The fighting there has displaced 1.2 million people. Iran has insisted the deal requires a complete halt to hostilities in Lebanon, but Netanyahu said Israel would keep its forces in southern Lebanon and maintain the right to respond to Hezbollah attacks.
“Iran wanted us to withdraw from it, but I stood firm,” Netanyahu said at a Monday news conference. Israel has not been a direct participant in the peace negotiations with Iran.
A U.S. official clarified that an Israeli withdrawal from Lebanon — which Israel entered in March after Hezbollah joined the broader conflict — is not a condition of the current deal. Meanwhile, Iranian Foreign Minister Abbas Araqchi called for an immediate halt to Israeli attacks.
