The United States and Iran have signed a preliminary agreement that paves the way for the reopening of the Strait of Hormuz, a US source told Reuters on Monday.
The development signals a significant de-escalation in regional tensions after months of heightened risk to global energy flows.
In a move designed to normalize shipping through the critical chokepoint, the United States has also moved to lift nearly all oil sanctions on Iran.
The dual-track approach aims to secure critical energy flows while addressing the financial mechanisms that had previously constrained Iranian exports.
Despite the diplomatic breakthrough, the immediate impact on global trade remains uncertain.
The United Nations has warned that the reopening of the Strait of Hormuz will not immediately end the global trade shock, as supply chains and insurance markets require time to adjust to the new reality.