Ceasefire agreement set for signing in Switzerland as global markets rally and oil prices dip on renewed supply hopes

The United States and Iran have reached a landmark agreement to end their conflict and reopen the critical Strait of Hormuz, a key artery for global oil shipments.

The deal, expected to be formally signed on Friday in Switzerland, signals a major diplomatic breakthrough after months of escalating tensions that disrupted regional stability and rattled global energy markets.

US President Donald Trump confirmed that the strategic waterway would reopen once the agreement is signed, restoring the flow of oil through one of the world’s most vital shipping routes. Iran’s Deputy Foreign Minister, Kazem Gharibabadi, also stated that the deal would bring an immediate end to hostilities between both nations.

Pakistan’s Prime Minister, Shehbaz Sharif, echoed the development, revealing that both sides had agreed to halt military operations across all fronts, including in Lebanon.

Despite the optimism, key aspects of the agreement remain unclear—particularly regarding Iran’s nuclear programme and the fate of its frozen financial assets.

The announcement has already sparked positive reactions in global markets, with oil prices reportedly declining amid growing confidence in a more stable energy supply.