Iran and the Kurdistan Region of Iraq have agreed to organize trade and facilitate border exchanges at the Sheikh Saleh crossing in Kermanshah province.
Officials from both sides reached the understanding during a joint meeting at the border in Salas-e Babajani county, aiming to streamline cross-border commerce.
The development arrives as broader diplomatic tensions in the Middle East appear to be easing.
Recent reports indicate that the United States and Iran have reached a mutual understanding agreement, with mediators from Pakistan and Qatar facilitating a roadmap toward a final peace deal following direct negotiations in Switzerland.
While the border agreement is primarily a regional trade measure, it signals a shift toward normalized economic activity in the region.
For markets, the move reinforces the narrative of de-escalation that has been driving sentiment improvements in energy and shipping sectors.