US-Iran deal live updates: JD Vance says US holds ‘all the cards’ as Iran deal enters 60-day negotiation phase

US-Iran deal live updates: The United States and Iran have reached an initial agreement aimed at extending their fragile ceasefire and reopening the Strait of Hormuz, a critical global energy shipping route. While the breakthrough has raised hopes of easing months of conflict and stabilizing oil markets, major obstacles remain before a lasting peace can be achieved.

What is the agreement?

The preliminary deal, announced on Monday, is expected to be formally signed on Friday in Geneva following mediation efforts by Pakistan.

Under the understanding:

-The US and Iran would extend the current ceasefire.

-The Strait of Hormuz would be reopened to commercial shipping.

-The US would end its naval blockade of Iranian ports.

-Both sides would begin broader negotiations on Iran’s nuclear program and other unresolved issues during a 60-day ceasefire period.

However, Iranian officials have stressed that none of the measures will take effect until the agreement is formally signed.

Why is the Strait of Hormuz so important?

The Strait of Hormuz is one of the world’s most strategically important waterways, serving as a key transit route for global oil and natural gas exports.

Its closure during the conflict disrupted energy supplies and contributed to higher fuel and commodity prices worldwide.

Although the proposed reopening has boosted market confidence, analysts warn that:

-Energy supply chains may take months to normalize.

-Shipping insurers and operators could remain cautious.

-The broader economic impact of the disruption may persist even after traffic resumes.

How did markets react?

Oil prices fell sharply after news of the agreement.

Brent crude dropped more than 5% to around $82.86 per barrel.

US West Texas Intermediate (WTI) fell nearly 6% to about $79.98 per barrel.

Both benchmarks touched their lowest levels in roughly three months as traders anticipated a return of normal shipping through the Strait of Hormuz and reduced geopolitical risk.