United States and Iran reach preliminary agreement to end hostilities

The United States and Iran have announced a preliminary agreement aimed at ending the ongoing conflict and reopening the Strait of Hormuz. Following 108 days of hostilities, the deal functions as a memorandum of understanding, initiating a 60-day negotiation period to address outstanding issues. Key concerns, such as Iran’s nuclear program, the status of enriched uranium, and compliance monitoring, remain unresolved. President Donald Trump has characterized the agreement as a diplomatic success, leading to a 5% drop in Brent crude oil prices due to reduced supply concerns. Analysts suggest that the conflict has strained U.S. relations with Gulf monarchies and highlighted limitations in American military power. The agreement marks a significant shift from previous U.S. expectations of a quick collapse of the Iranian regime. Observers noted that the deal essentially returns the situation to the state it was in prior to the escalation of the conflict. Meanwhile, regional powers are reportedly exploring alternative alliances and seeking ways to coexist with Tehran.