The United States and Iran have agreed to cease military strikes against each other, a development that could significantly reduce geopolitical risk in the Middle East.

According to Axios, citing a senior US official, the two nations have also planned talks in Doha to address the ongoing dispute over the Strait of Hormuz.

This agreement marks a pivotal shift in the region's security dynamics, following a period of heightened tensions that threatened critical global shipping routes.

The Strait of Hormuz remains a vital chokepoint for global energy supplies, and any escalation has historically triggered sharp moves in oil prices and freight rates.

The decision to halt strikes and engage in dialogue suggests a mutual interest in stabilizing the corridor and preventing further disruption to international trade.

Markets are likely to respond positively to the de-escalation, with Brent crude and other energy benchmarks expected to ease as risk premiums unwind.