US-Iran deal eases tensions in the Strait of Hormuz

WASHINGTON/DUBAI — Oil tankers transited the Strait of Hormuz on Thursday as the United States announced it had lifted its blockade on Iran under an interim agreement aimed at ending the conflict between the two countries. However, officials on both sides acknowledged that major disputes remain unresolved.

Oil prices fell to their lowest level since the war began on Feb. 28, as analysts projected that shipments through the Strait of Hormuz—which handles about one-fifth of global crude flows—could gradually return to normal in the coming months if the ceasefire holds.

Despite the diplomatic breakthrough, violence continued elsewhere in the region. Israel pressed ahead with its military operations against Hezbollah in Lebanon, raising doubts about the durability of the broader agreement.

In Washington, some Republican allies of U.S. President Donald Trump questioned whether the administration conceded too much in its effort to end the nearly four-month-old conflict, which has been politically unpopular among American voters.

Iran’s Supreme Leader, Mojtaba Khamenei, said Trump signed the deal “out of desperation” and signaled that upcoming negotiations over Iran’s nuclear program would be difficult. He added that Tehran would reject excessive demands from Washington.

“If the American side wants to be too demanding, we will not accept it,” he said in a written statement.

Under the agreement, negotiators have 60 days to reach a framework on Iran’s nuclear program. The deal also outlines the creation of a $300 billion reconstruction fund for Iran, along with other financial incentives. U.S. Vice President JD Vance, who will lead the U.S. delegation, said Washington will also push to restrict Iran’s long-range missile capabilities.

When the war began nearly four months ago, Trump said the objectives included dismantling Iran’s nuclear weapons program, curbing its regional military reach, and weakening its support for allied armed groups. He initially demanded Iran’s “unconditional surrender,” but ultimately signed the interim agreement without achieving those stated goals.

U.S. officials maintain that the talks could still result in a stronger, more comprehensive nuclear deal. Critics, however, argue that Iran has improved its strategic position by surviving sustained military pressure, maintaining influence over key maritime routes, and securing financial sanctions relief.

Tehran has also indicated it will continue to exercise operational control over the Strait of Hormuz during the 60-day transition period, including issuing permits and directing maritime traffic, though it will not impose fees.

TRUMP, VANCE WARN ISRAEL

In Lebanon, where more than a million people have been displaced, Israeli airstrikes resumed early Thursday, underscoring uncertainty over whether the ceasefire framework can be enforced across all fronts.

Trump said he expects a full ceasefire to take hold region-wide. “The United States is committed to PEACE, and we encourage everyone in the Middle East Region to maintain their commitment to allowing our negotiations to beautifully unfold,” he said on social media.

The agreement calls for the “permanent termination” of hostilities in Lebanon and guarantees its “territorial integrity and sovereignty.”

However, Israel—excluded from the negotiations—said it has no intention of withdrawing forces from Lebanese territory and released updated maps indicating an expanded security zone.

Trump has increasingly criticized Israel’s military operations in Lebanon, marking one of the most significant strains in U.S.-Israel relations in decades.

Vance also urged restraint, warning Israel to respect the peace process.

“If I was in the cabinet of the Israeli government, I might not be attacking the only powerful ally that I have anywhere left in the entire world,” he said at the White House. -Reporting by Reuters bureaus, Writing by Andy Sullivan, Peter Graff and Jon Boyle; Editing by William Maclean, Daniel Wallis and Sanjeev Miglani/Reuters