President Donald Trump has declared that a peace deal with Iran is close, with the Strait of Hormuz potentially re-opening to commercial shipping within days.
Trump announced on Saturday that the critical trading route would re-open as part of a deal he described as coming “shortly”, raising hopes of an end to months of disruption.
He wrote on social media: “Final aspects and details of the Deal are currently being discussed, and will be announced shortly.”
Trump confirmed he had discussed the terms of the agreement with Gulf region countries as well as Israeli Prime Minister Benjamin Netanyahu ahead of any formal announcement.
The UAE and Jordan were among several nations that urged Trump to secure a deal and restore shipping access through the strategically vital Strait of Hormuz.
Reports suggest the deal could take shape as a framework agreement paired with a 60-day ceasefire, with negotiations on finer details to follow in subsequent days.
Under the proposed terms, the Strait of Hormuz would re-open during the ceasefire period with no tolls imposed, and Iran would regain the ability to resume oil exports to International markets.
Iran would also take responsibility for clearing mines it deployed in the waterway, while the United States would lift some of its existing sanctions on Iranian oil in return.
Reports have indicated that Iran agreed to surrender its uranium stockpile, a central demand from both Washington and Tel Aviv throughout the negotiations.
However, an Iranian source told Reuters: “The nuclear issue will be addressed in negotiations for a final agreement and are therefore not part of the current deal.”
The UK stands to benefit significantly from any resolution, having faced economic strain from the disruption that has persisted for at least three months, with effects expected to continue over the coming year.
The OECD warned that the UK faces a larger hit to growth than other G7 nations, with inflation potentially surging past six per cent in the most severe scenario.
Prime Minister Sir Keir Starmer said he welcomed progress on the deal, signalling the government’s support for efforts to reach a swift resolution to the conflict.
Chief Secretary to the Prime Minister Darren Jones told broadcasters that a speedy resolution was essential to limiting the economic damage already absorbed by the British economy.
Jones told Sky News: “We’ve had to prepare ourselves for the domestic implications of the conflict in the Middle East on the UK economy and the sooner we are able to get to the point of de-escalation and, crucially, get the Strait of Hormuz open again for the flow of oil and trade, the better for all of us.”
He added: “I think what is really the question here is how we get the Strait of Hormuz open, how the Americans and others can help to clear mines that may have been laid in the Strait of Hormuz, so that commercial shipping companies have the confidence again to be able to travel through it.”
The Strait of Hormuz serves as one of the world’s most critical chokepoints for oil and trade, with its closure inflicting wide-reaching consequences on global supply chains and energy markets.