U.S.-Iran Agreement Seeks to End War, Reopen Hormuz, and Resume Nuclear Talks Within 60 Days

The United States and Iran have reached an agreement aimed at concluding their three-month regional conflict, reopening the strategically critical Strait of Hormuz, easing sanctions on Iran, and relaunching nuclear negotiations within a 60-day deadline. The accord was signed by U.S. President Donald Trump and Iranian President Masoud Pezeshkian but remains vague on several major issues, with the U.S. indicating that outstanding matters will be resolved during the 60-day period.

A central point of contention involves Iran's nuclear program. Trump has stated that preventing Iran from acquiring nuclear weapons was a key objective of the conflict, while Iran has consistently denied seeking such capabilities. The agreement does not specify the uranium enrichment levels Iran will be permitted—whether limited to civilian power plant requirements or the higher levels reached before the war. Reaching a comprehensive nuclear agreement before the 60-day deadline will be extremely challenging; the 2015 nuclear deal that Trump withdrew from during his first term required more than 18 months of complex technical negotiations. The accord stipulates that Iran's existing stockpile of highly enriched uranium, largely destroyed by U.S. strikes the previous year, will be diluted on-site under United Nations supervision, though Trump has long demanded its removal from the country.

The reopening of the Strait of Hormuz carries significant economic implications. Before the war, the waterway handled approximately one-fifth of the world's oil and gas trade. Iran's effective closure caused a historic global fuel shock, driving up prices for gasoline, groceries, fertilizer, and airline tickets. Under the agreement, Iran will remove mines within 30 days, and no charges will be imposed on commercial vessels during the 60-day period. However, Iran has indicated it intends to continue charging tolls after this initial period—a stance legal experts say would violate international maritime law and likely conflict with sanctions on Iran. Major shippers have already begun moving vessels through the strait.

Even with the waterway's reopening, normalizing oil and gas flows could take weeks or months. Ship captains and insurers must assess safety conditions, hundreds of vessels bottled up in the Persian Gulf for months must transit the narrow passage, and major Gulf oil and gas producers—including Kuwait, Qatar, and the United Arab Emirates—require time to repair critical infrastructure damaged by Iranian missile and drone attacks. The ceasefire, declared in April, has already been tested by several brief exchanges of fire.

On sanctions relief, the U.S. has lifted its blockade and committed to sanctions waivers enabling Iran to export oil and unfreezing Iranian funds held abroad. These measures are expected to provide economic relief to Iran's damaged economy and likely contribute to reduced world fuel prices. However, numerous international sanctions imposed over years related to Iran's nuclear program, support for militant groups, and human rights violations remain unresolved.