The US and Iranian presidents have signed an initial peace deal that includes an immediate and permanent termination of military operations on all fronts, including in Lebanon. The agreement, signed by President Donald Trump and Iranian President Mas, also stipulates the reopening of the Strait of Hormuz, a critical waterway for global oil and gas supplies. Initially, ships will be able to pass through the Strait without charges for 60 days. This breakthrough follows weeks of negotiations mediated by Pakistani Prime Minister Shehbaz Sharif.
The deal outlines an extendable 60-day period for future negotiations on Iran's nuclear program and the complete lifting of US sanctions. While the US originally demanded the removal of enriched uranium from Iran, the draft deal allows Iran to dilute its enriched uranium on-site under IAEA supervision. Iran has reaffirmed it will not procure or develop nuclear weapons. British, German, French, and Italian leaders have expressed readiness to lift sanctions against Iran in response to verifiable steps to limit its nuclear program.
Included in the agreement is a $300 billion plan for Iran's reconstruction and economic development, which will be finalized within 60 days of the broader deal. Despite this, some US senators, such as Republican Ted Cruz, have criticized the fund. Oil prices fell by approximately 5% on Monday following the news, with global stock markets seeing a boost. Shippers, however, remain cautious, as clearing the Strait of mines could take weeks.
Lebanon has been a major sticking point in previous talks, with Israeli offensive against Hezbollah displacing around 1.2 million people. Although Israel has not committed to withdrawing from Lebanon and launched attacks on Hezbollah on Wednesday, the agreement calls for a full ceasefire. Hezbollah had ceased firing at Israel before midnight on Sunday.
While the agreement marks a significant step towards de-escalation, some US senators, including Jeanne Shaheen and Bill Cassidy, have expressed concerns, labeling it a "very bad deal" that doesn't address issues like Iran's support for regional proxies or its missile program.
