US-Iran Peace Deal: Washington and Tehran officials to meet in Switzerland today; Will Pakistan be present at event?
According to shipping companies, between June 16 and June 18, approximately 40 50 vessels exited the western section of the Strait of Hormuz.
US-Iran Peace Talk (AI Image)
New Delhi: The United States and Iran will come face-to-face on Friday at Switzerland's B rgenstock Resort for historic peace talks after 47 years of hostility and 107 days of conflict. During the meeting, the agreement will be implemented, and the roadmap ahead will be discussed. To recall, on Wednesday, US President Donald Trump signed a 14-point preliminary Memorandum of Understanding (MoU) during a dinner meeting with French President Emmanuel Macron at the Palace of Versailles. The agreement has been named the Islamabad Memorandum of Understanding.
In Tehran, Iranian President Masoud Pezeshkian also signed the document, while Shehbaz Sharif signed it in his capacity as mediator and guarantor of the deal. US Vice President JD Vance stated that with the completion of the digital signatures, the agreement officially came into effect immediately.
It is important to note that both sides were initially scheduled to formally sign the agreement face-to-face in Switzerland on Friday. However, to avoid losing time in launching the crucial negotiations, the deal was approved in advance.
Pakistani and Qatari Officials to Attend
Officials from Pakistan and Qatar will also be present at the talks alongside representatives from the United States and Iran, as per the Reuters report, citing Switzerland's Foreign Ministry. However, details regarding the meeting's agenda and schedule have not been made public.
How are the markets reacting?
The global markets have responded positively to the announcement of the agreement, as per The New York Times. Post-agreement announcement, the international crude oil prices fell by nearly 2 percent to a three-month low of around USD 78 per barrel while major stock markets posted gains. Vessel traffic through the Strait of Hormuz also increased significantly.
Three Saudi Supertankers Exit Hormuz
In a significant development, three Saudi Arabian supertankers successfully passed through the Strait of Hormuz for the first time since the Iran conflict. Reports indicate that several other vessels have resumed transit. Experts are of the opinion that it may take about a month for maritime traffic to return to normal and until October for oil production to fully recover. Nevertheless, crude oil prices could fall to around USD 60 per barrel in the near future.
Here are some of the key details:
- According to shipping companies, between June 16 and June 18, approximately 40 50 vessels exited the western section of the Strait of Hormuz.
- US Central Command (CENTCOM) announced that the blockade around Iranian ports had been completely removed.
- During a White House press briefing, US Vice President JD Vance stated that the US Navy had lifted its blockade and allowed dozens of ships to transit Iranian ports.
- He further added that 12.5 million barrels of oil passed through the Strait of Hormuz on Thursday alone.
- Vance said that fuel prices in the United States had fallen back to pre-war levels of around USD 4 per gallon.
What are the key Provisions of the agreement?
As per the Reuters report, the 14-point preliminary Memorandum of Understanding (MoU) includes a 60-day ceasefire. During this period, detailed negotiations will take place regarding:
- Iran's nuclear program
- Enriched uranium stockpiles
- Other disputed issues
Under the MoU:
It is important to note that under the MoU, Iran will not impose any additional charges on shipping traffic for the next 60 days. However, Tehran maintains that it reserves the sovereign right to levy service fees in the future.
The agreement also provides for:
The phased release of frozen Iranian assets held abroad. A US-backed $300 billion economic development and reconstruction program for Iran.
During the ceasefire period, Iran will maintain the status quo in its nuclear activities. Discussions will also be held on reducing highly enriched uranium under the supervision of the International Atomic Energy Agency (IAEA) and on its eventual disposal.
The Curious Coincidence of "107" and Versailles Palace
According to ANI, the Palace of Versailles has once again found itself at the center of history. It was here in 1919 that the Treaty of Versailles, which formally ended the First World War, was signed. Coincidentally, 107 years later, President Donald Trump signed the agreement with Iran at the same venue.
Another striking coincidence is that the agreement emerged exactly 107 days after tensions escalated between the United States and Iran. The talks mark the highest-level direct engagement between the two countries since the 1979 Islamic Revolution. Nearly 7,000 people reportedly lost their lives during the conflict.
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