Oil prices drop further as Iran and the US digitally sign the Islamabad peace deal
Oil prices fell further on Wednesday, dropping by approximately 2%, after the presidents of Iran and the United States digitally signed a memorandum of understanding (MoU) to end the war. Under the terms of the agreement, all hostilities and military operations—including those in Lebanon—have ceased immediately. In a significant move, the U.S. naval blockade against Iran has also been lifted.
The MoU further stipulates the reopening of the Strait of Hormuz to commercial shipping, a critical passage for global oil supplies.
A 60-day verification and negotiation period will now follow, during which both sides will work to resolve outstanding issues. These include the full lifting of sanctions, the nuclear file, post-war reconstruction and economic development, and the establishment of a monitoring mechanism to ensure compliance with the agreement.
