4 min readJun 15, 2026 10:28 AM IST
First published on: Jun 15, 2026 at 10:22 AM IST
The United States and Iran have announced a breakthrough agreement aimed at ending months of hostilities, with both sides saying the deal will come into force on Friday. As part of the arrangement, US President Donald Trump said Washington will lift its naval blockade of Iranian ports and reopen the strategically vital Strait of Hormuz once the agreement is formally signed.
“The deal with the Islamic Republic of Iran is now complete. Congratulations to all!” Trump said in a post on Truth Social.
“I hereby fully authorise the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorise the immediate removal of the US Naval blockade. Ships of the World, start your engines. Let the oil flow!” Trump added to the post.
While the announcement has raised hopes of easing tensions in the region and restoring global shipping flows, details of the agreement remain unclear.
Disagreement over next step
Prime Minister Shehbaz Sharif announced that US and Iran had agreed to an immediate and permanent ceasefire across all fronts, including Lebanon.
In a post on X, Sharif said the agreement would be formally signed in Switzerland on June 19. He thanked both the United States and Iran for their commitment to ending hostilities, and expressed appreciation to Qatar for its role in facilitating the breakthrough.
However, signs of disagreement have already emerged ahead of the signing ceremony. Iranian Deputy Foreign Minister Kazem Gharibabadi said further negotiations would proceed only after the United States releases billions of dollars in Iranian assets frozen abroad, according to CNN reports.
Israel yet to respond
Israel has not officially commented on the agreement, adding another layer of uncertainty to the fragile diplomatic breakthrough.
Hours before news of the deal emerged, Israeli forces carried out airstrikes in Beirut, citing the continued volatility of the broader regional conflict. The strikes have raised concerns that tensions involving Israel and Iran-backed groups could complicate efforts to stabilise the region.
Trump also appeared to distance himself from Israeli Prime Minister Benjamin Netanyahu, describing him as “a very difficult guy” while speaking about efforts to secure a broader peace arrangement, according to the CNN reported.
Strait of Hormuz
Markets and the shipping industry are closely watching developments surrounding the Strait of Hormuz, an energy corridor through which a substantial share of the world’s oil and liquefied natural gas exports pass. Around 2,000 vessels are still stuck in the Gulf, awaiting clearance to pass through.
Trump said the waterway would reopen following the signing of the agreement, potentially bringing relief to global energy markets after months of disruption, as per Al Jazeera reports. However, questions remain over how quickly commercial shipping can resume normal operations amid ongoing security concerns and the presence of suspected naval mines in the region.
Uncertain road ahead
The agreement represents the most diplomatic development in months, but analysts caution that its success will depend on how both sides resolve outstanding disputes and implement their commitments.
Even if the Strait reopens, vessels passing through are expected to face elevated risks, potentially driving insurance premiums from around 0.25% of a ship’s hull value before the conflict to as high as 5%, shipping insurers told Al Jazeera this week.
With disagreements already surfacing over sanctions relief and future negotiations and with Israel yet to publicly endorse the arrangement, the coming days are expected to test whether the breakthrough can evolve into a lasting peace.
A small motorboat passes anchored vessels in the Strait of Hormuz off Bandar Abbas, Iran. (Source: AP) 
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