US-Iran ceasefire deal re-opens Strait of Hormuz, oil prices plunge

The United States and Iran have reached a preliminary agreement to end months of conflict and reopen the strategically important Strait of Hormuz, a move that has brought relief to global energy markets.

The agreement, which is expected to be formally signed in Switzerland, includes an immediate ceasefire and the restoration of shipping traffic through the vital waterway.

The Strait of Hormuz is one of the world's most important oil transit routes, carrying a significant share of global oil and gas exports.

Its disruption during the conflict caused energy prices to surge and created uncertainty in international markets. Following news of the agreement, oil prices dropped sharply as investors anticipated a return to stable energy supplies.

Brent crude prices fell by more than 4%, while stock markets and risk-sensitive currencies also reacted positively.

The deal reportedly opens a 60-day period for further negotiations on key issues, including Iran’s nuclear program and potential sanctions relief.

While several details still need to be finalized, world leaders and financial markets have welcomed the development as a significant step toward reducing tensions in the Middle East and restoring stability to global trade and energy flows.