Iran Deal Reopens Strait of Hormuz; Reactions Pour In Across MENA
DUBAI / WASHINGTON — The United States and Iran confirmed Sunday they had reached a deal to end the month-long Middle East war, with President Donald Trump declaring the Strait of Hormuz will reopen to commercial traffic within 48 hours.
The agreement, brokered through back-channel diplomacy and pressure from Gulf Arab states, ends weeks of tit-for-tat missile strikes, drone attacks on Gulf shipping, and the near-total closure of the strait that had driven Brent above $140 a barrel.
Iran
Under the terms, Iran will dismantle floating mines, anti-ship missile batteries, and fast-attack craft nests along the northern shore, and will allow IAEA inspectors to verify that no enriched uranium was moved from declared sites during the conflict.
In return, the United States will release approximately $12 billion in frozen Iranian funds held in escrow in Doha, lift secondary sanctions on Iranian port operators, and pledge not to support further Israeli strikes on Iranian nuclear or military infrastructure for an initial 18-month term.
Supreme Leader Ayatollah Ali Khamenei called it a victory of the Iranian nations perseverance. The deal still faces a critical test in parliament, where hardliners have already criticized the release of frozen funds as insufficient.
Saudi Arabia, UAE, and Oman
Saudi Arabia, the United Arab Emirates, and Oman — all of which faced Iranian retaliation for supporting U.S. operations during the war — issued coordinated statements backing the deal within hours of the announcement.
Crown Prince Mohammed bin Salman spoke by phone with Trump and Iranian Foreign Minister Abbas Araghchi, and a senior Saudi official said the kingdom was ready to play a constructive role in monitoring the agreement going forward.
Energy traders said the immediate impact would be felt in the Gulf, where insurers including Lloyds of London announced they would reduce war-risk surcharges on Gulf transit immediately, freeing up tanker capacity trapped in Gulf anchorages for weeks.
Iraq, Lebanon, Egypt, and Jordan
In Iraq, the Popular Mobilization Forces welcomed the deal, saying it opened the door to broader regional de-escalation that could allow Iraq to resume exports through the Persian Gulf without facing retaliatory strikes.
In Lebanon, caretaker Prime Minister Najib Mikatis office said Beirut was watching closely and hoped the deal would create space for a parallel resolution of the still-simmering Hezbollah-Israel front along the southern border.
Egypts foreign ministry called the agreement an important step toward restoring stability and offered to host follow-up regional talks in Cairo if both sides agree. Jordan, which had hosted secret pre-deal negotiations, welcomed the announcement as well.
What to Watch
Will the Iranian parliament ratify the deal without demanding additional concessions on the nuclear file? Will Israeli Prime Minister Benjamin Netanyahus government endorse it, given that Israeli strikes on Iran continued even as the broader deal was being negotiated?
And will Brent hold below $100, or will a single violation send prices back above $130? The first escorted convoys could begin moving through the strait as early as Tuesday.