President Donald Trump announced on Thursday, June 11, that he had called off new U.S. military strikes against Iran, hours after threatening escalation. He stated that "final points" of an initial peace deal had been approved by all parties involved, including the highest level of Iranian leadership, as well as Israel, Saudi Arabia, Qatar, and the United Arab Emirates. Trump expects an agreement to extend a fragile ceasefire, which began in April, to be finalized in the coming days.
The emerging deal aims to temporarily ease Iran's control over the Strait of Hormuz and lift a U.S. blockade on Iranian ports that has been in effect since mid-April. This blockade has disrupted global energy supplies, driven up oil prices, and made essential goods more expensive. Despite the progress, the U.S. naval blockade will remain fully active until the transaction is officially finalized, with the time and place of the signing to be announced shortly. U.S. Treasury Secretary Scott Bessent indicated that the U.S. would use funds from frozen Iranian accounts to cover damages to American allies and any tolls Iran imposes for transit through the Strait of Hormuz.
Several issues remain to be discussed in detail, including a mechanism for releasing tens of billions of dollars in frozen Iranian oil revenues. Unresolved questions concerning Tehran's nuclear development program and its stockpile of highly enriched uranium are being deferred for future talks. Analysts note that Trump's concern about the deal being compared to the 2015 agreement, which he criticized and withdrew the U.S. from, may influence negotiations. The war, which began on February 28 with U.S. and Israeli airstrikes on Iran, has resulted in thousands of casualties, primarily in Iran and Lebanon, and has significantly impacted global oil prices.
