U.S.-Iran Near Gulf War End Agreement

The United States and Iran are on the brink of ending the Gulf War through a significant one-page memorandum. According to sources, this development was first reported by Axios, and key mediation is being facilitated by Pakistan. The memo aims to formalize the war's end, enabling open discussions to restore shipping routes through the crucial Strait of Hormuz and potentially lifting U.S. sanctions on Iran, with specifications on curbing Iran's nuclear program.

This proposed agreement has already caused global oil prices to drop significantly, with Brent crude futures experiencing an over 8% decrease. In a parallel response, global share markets showed optimism, with share prices increasing and bond yields falling. This potential agreement follows U.S. President Donald Trump's decision to halt a naval mission focused on reopening the Strait of Hormuz, suggesting that significant progress had been made in peace talks.

While the two sides work towards a full agreement, U.S. representatives, including Trump's envoy Steve Witkoff and son-in-law Jared Kushner, are poised to conduct further negotiations. A key aspect of this agreement is the mutual lifting of blockades on the Strait of Hormuz. However, several U.S. demands, including restrictions on Iran's missile program, remain unresolved at this stage. These developments follow recent tensions in the Strait, with incidents involving attacks on vessels cited as catalysts for diplomatic efforts.

(With inputs from agencies.)