Iran Hopes for Hormuz Reopening in New US Peace Agreement

Deal to end fighting would lead – Iran’s Foreign Minister, Seyed Abbas Araghchi, has indicated that a ceasefire agreement with the United States is on the verge of finalization. The deal, which is expected to be signed shortly, would not only halt the ongoing hostilities but also ensure the reopening of the Strait of Hormuz, a vital maritime passage for global oil and liquefied natural gas trade. Additionally, the United States would lift its naval blockade on Iranian shipping, according to Araghchi, who emphasized that the agreement includes these critical provisions.

The Conflict’s Origins

The recent escalation began on 28 February, when US and Israeli forces launched airstrikes across Iran, prompting retaliatory actions from Tehran. Iran’s response targeted Israel and US-aligned states in the Gulf region, effectively closing the Strait of Hormuz to disrupt maritime traffic and signal its resolve. This strategic chokepoint, which handles approximately 20% of the world’s oil and LNG, became a focal point of the conflict, raising concerns about global energy supplies and regional stability.

Progress and Remaining Challenges

Although a ceasefire was brokered in April, tensions have persisted, with both sides engaging in sporadic clashes. This week alone, there were two rounds of reciprocal strikes, underscoring the difficulty of maintaining peace. However, US President Donald Trump declared that “scheduled attacks” against Iran had been canceled, attributing this decision to “a great settlement” reached by negotiators. He hinted that the deal would be formalized “imminently,” though final details remain pending.

“As soon as the final stages of our negotiations are completed, this agreement will be signed and announced. This could happen in the coming days. I am very hopeful,” Araghchi stated during a televised address, highlighting the optimism surrounding the deal.

Pakistan’s Prime Minister, Shehbaz Sharif, who played a role in facilitating the talks, confirmed that the Memorandum of Understanding (MOU) between the US and Iran had been agreed upon. The document, said to contain 14 key points, outlines the terms for ending the conflict and initiating broader negotiations. Despite this progress, internal discussions within Iran’s Supreme National Security Council reveal divided opinions, with some officials expressing support and others voicing reservations.

Economic Terms and Conditions

US officials provided further clarification on the economic aspects of the agreement, stating that Iran’s benefits would be contingent on its compliance with specific obligations. They emphasized that no financial commitments would be made upfront, rejecting earlier reports suggesting Iranian assets might be unfrozen prematurely. Instead, a phased approach to reintegration into the global economy would be implemented, with sanctions lifted and asset releases occurring gradually.

The deal also mandates Iran to cease funding regional proxy groups, including Hezbollah and other militant organizations. This condition, which aims to reduce Iran’s influence in the Middle East, is seen as a significant concession. US representatives reiterated that the MOU is grounded in “performance” rather than trust, ensuring that economic rewards are tied to measurable progress.

Broader Implications and Next Steps

While the agreement marks a pivotal moment, experts note that it is the latest in a series of proposed deals that have faltered in the past. The current version, however, appears more stable, with heightened optimism and transparency from all parties involved. The United States, Iran, Pakistan, and Qatar—key mediators—have all expressed cautious support, though the exact mechanisms for implementing the agreement remain under discussion.

The reopening of the Strait of Hormuz is a central goal, as its closure has caused significant disruptions to international trade. US officials confirmed that this step would take effect almost immediately following the deal’s ratification, with the next phase involving a 60-day negotiation period focused on Iran’s enriched uranium stockpiles. This process would culminate in the destruction and removal of nuclear material, though specifics on how this will be executed are still being finalized.

“The MOU is not based on trust or promises, but on performance. Iran will only receive economic benefits once its commitments are verified,” a US official explained during a press briefing, underscoring the practical focus of the agreement.

Iran’s Supreme National Security Council has yet to reach a unanimous decision on the deal’s terms. Araghchi noted that the council is split, with both supporters and critics of the agreement present. However, he maintained that a consensus is imminent, with the finalization of the deal dependent on approval from the group. “For now, we must wait. If approved, the agreement will be signed remotely,” he added, indicating that the process could be completed without direct face-to-face meetings.

Israel’s Role and Nuclear Concerns

Israel, though not directly involved in the negotiations, has been a key player in the conflict. The US and Iran have agreed to extend the ceasefire, but the agreement does not address Israel’s concerns about Iran’s nuclear ambitions. For decades, Western nations have accused Iran of pursuing a nuclear weapon, a claim Iran has consistently denied, asserting its program is solely for peaceful purposes such as electricity generation and scientific research.

Despite these assurances, the nuclear issue remains a critical point of contention. The proposed agreement would initiate talks on this matter, with the US emphasizing that Iran’s enriched uranium will be the primary focus. If successful, this process would lead to the dismantling of Iran’s nuclear infrastructure, ensuring that the country cannot quickly develop a bomb. The timeline for these negotiations, however, is still being set, with the initial phase focused on immediate measures before deeper discussions begin.

While the deal is seen as a breakthrough, challenges persist. The US and Iran have previously proposed similar agreements that collapsed due to differing priorities or political pressures. This time, though, there is a greater sense of alignment, with both sides acknowledging the need for compromise. As the final stages approach, the international community watches closely, hoping the agreement will pave the way for sustained peace in the region.

Iran’s Foreign Minister reiterated that the deal’s first priority is the lifting of the US naval blockade, which he described as a “key component” of the agreement. The reopening of the Strait of Hormuz is not just a logistical achievement but a symbolic one, signaling Iran’s willingness to ease tensions and restore normalcy to a critical global supply route. With the potential for a rapid resolution, the world holds its breath for the signing of this historic accord.