US-Iran Peace Deal Ends War and Reopens Strait of Hormuz
The United States and Iran have digitally signed a peace agreement to end hostilities and reopen the Strait of Hormuz, according to U.S. Vice President JD Vance. The deal establishes an immediate ceasefire across all fronts, including Lebanon, and mandates the release of $24 billion in frozen Iranian assets, with a formal signing scheduled for Friday in Geneva.
How will the $24 billion asset release work?
The financial terms of the pact are a point of contention between Washington and Tehran. Vice President JD Vance told ABC television on Monday that the agreement was signed digitally and confirmed that no funds have been released yet.
However, the semi-official Iranian agency Mehr reported a different timeline. According to Mehr, Iran will receive $12 billion of its blocked assets from foreign banks before nuclear conversations begin. The full $24 billion would be released in stages, with the remaining half disbursed over a 60-day period.
Will the Strait of Hormuz actually be toll-free?
President Donald Trump announced Monday that oil tankers have already begun exiting the Strait of Hormuz, which Iran blocked on February 28. Trump stated the passage will be completely open by Friday and guaranteed the strait would remain “permanently free of tolls.”
Iran disagrees with this characterization. On Monday, Iranian officials insisted they will still charge fees for passage to cover security and environmental services. They haven’t specified the exact amount of these charges.
Comparing the Claims on Hormuz Access
| Feature | U.S. Position (Trump) | Iranian Position |
|---|---|---|
| Payment | Permanently toll-free | Fees for security/environment |
| Timeline | Fully open by Friday | Open, but conditional on fees |
Why is Israel rejecting the peace deal?
Political reaction in Israel has been overwhelmingly critical. Both the opposition and members of Prime Minister Benjamin Netanyahu’s own government argue the pact ignores Israeli security interests.
According to international analyst Francesco Tucci of the UPC, there is a clear “rupture” in the axis between Israel and the United States. Israel is specifically concerned that the agreement doesn’t address Iran’s ballistic missile program or its support for regional proxies like Hezbollah, Hamas, and the Houthis.
Journalist Carlos Novoa noted that the absence of explicit commitments on these issues means Israel may continue independent military actions in Lebanon, even if those actions clash with Washington’s current strategy.
What happens to Iran’s nuclear program next?
The most volatile issues, including uranium enrichment and the 440 kilos of 60% enriched uranium, aren’t settled. These topics are scheduled for discussion in the 60 days following the formal signing in Geneva.
Analyst Carlos Novoa suggests the U.S. adjusted its goals after realizing Iran’s capacity for resistance. While the U.S. initially demanded an immediate end to the nuclear program, those maximalist conditions aren’t explicitly in the current draft.
How did global markets react to the news?
Investors responded with immediate optimism on Monday. Major Asian stock markets saw widespread gains, with some climbing over 5%.
The energy sector saw a sharp correction. Brent crude prices dropped 4.67% to $83 per barrel at 5:00 GMT Monday, as the prospect of a reopened Strait of Hormuz reduced the “risk premium” on global oil supplies.
Will this agreement lead to long-term stability?
Experts are divided on whether this is a lasting peace or a temporary pause. Francesco Tucci argues that while the deal stabilizes the region, it may inadvertently strengthen the Iranian regime. He noted that recovering frozen assets allows Tehran to fund internal repression and rebuild military capabilities damaged during the war.
Novoa, however, views it as a pragmatic “win-win.” He argues that Trump can frame the deal as a success for his administration, while Iran gets the urgent economic relief it needs to survive.
Frequently Asked Questions
When is the formal signing of the US-Iran deal?
The formal ceremony is scheduled for Friday in Geneva, Switzerland.
How much money is the U.S. releasing to Iran?
The total amount is $24 billion in frozen assets, with $12 billion reportedly released before nuclear talks begin, according to the Mehr agency.
Does the deal end the conflict in Lebanon?
Yes, the agreement mandates an immediate and permanent cessation of hostilities on all fronts, including Lebanon.
Is the nuclear program already resolved?
No. The nuclear program, including uranium enrichment limits, will be negotiated in the 60 days following the formal signing.
What do you think about the removal of ballistic missiles from the negotiation agenda? Does this make the region safer or more volatile? Let us know in the comments or subscribe to our newsletter for real-time updates on Middle East diplomacy.