The United States and Iran have reached a framework agreement to end the ongoing war, with US President Donald Trump confirming that the blockade of the Strait of Hormuz will be lifted.
The announcement marks a decisive shift in the geopolitical landscape, moving the region from active conflict toward a negotiated settlement.
The development arrives after weeks of intense diplomatic maneuvering, with Pakistan acting as a key intermediary in the talks.
The agreement is expected to be formally signed within hours, bringing a potential end to the hostilities that have kept energy markets on edge.
Markets are now rapidly repricing the risk premium that has been baked into oil and shipping rates throughout the conflict.
The prospect of unimpeded tanker traffic through the Hormuz Strait removes one of the most significant supply constraints on global crude flows, likely leading to a substantial drop in Brent crude and a normalization of freight rates.