A proposed agreement between Iran and the United States could lead to the reopening of the Strait of Hormuz and the lifting of oil sanctions on Iran, according to reports from Iranian state media.
The reported 14-point draft agreement includes a commitment from Iran to reopen the vital Strait of Hormuz within 30 days of the deal being finalized. In return, the United States would suspend sanctions on Iranian oil exports and remove naval restrictions affecting the country.
Iranian media also reported that formal negotiations would only move forward after half of Iran’s frozen overseas funds are released. The draft reportedly calls for all U.S. forces to withdraw from Iran and for the United States and its allies to present reconstruction plans worth at least $300 billion to support rebuilding efforts.
The White House has not yet officially commented on the reported details of the proposal.
President Donald Trump said on Thursday that the U.S. had reached what he described as a “great settlement” with Iran, although he noted that the agreement still depends on the finalization of documents.
Trump also stated that the Strait of Hormuz would reopen immediately after the deal is signed.
Israel has not publicly responded to the latest reported draft agreement. However, Trump confirmed that he had spoken with Israeli Prime Minister Benjamin Netanyahu and other regional leaders about the negotiations.
Netanyahu’s office later confirmed the discussion and said Israel appreciated Trump’s commitment to ensuring that any final agreement would include strict limits on Iran’s nuclear activities and other regional actions.
The Strait of Hormuz remains one of the world’s most important oil shipping routes, carrying roughly 25% of global seaborne oil trade and around 20% of the world’s liquefied natural gas supplies. The ongoing conflict in the region has raised concerns about disruptions to global energy markets.
Financial markets reacted positively to the news of a possible peace agreement. Global stock markets rose sharply on Friday, with major European indexes gaining close to 2%.
Oil prices also dropped as investors anticipated reduced tensions in the region. U.S. crude oil futures fell by more than 1.5%, while Brent crude prices also recorded notable declines.
