Iran and the United States signed a historic peace agreement on Monday in Switzerland, ending more than 40 years of diplomatic rupture and setting the stage for a new era of cooperation on nuclear issues and regional security. The deal was reached after marathon talks in Geneva, brokered by Swiss and European Union mediators.
Key terms of the agreement
Under the accord, Iran agrees to halt all uranium enrichment above 3.67 percent and submit to snap inspections by the International Atomic Energy Agency (IAEA). In return, the US will lift all secondary sanctions on Iranian oil exports and unfreeze approximately $6 billion in Iranian assets held in foreign banks. The deal also includes a commitment to de-escalate tensions in the Strait of Hormuz, where Iranian forces had harassed commercial vessels.
According to a senior US State Department official, the agreement was the result of “intense, direct negotiations” that began in secret six months ago. “This is a win for diplomacy and a testament to what can be achieved when both sides choose dialogue over confrontation,” the official said.
Reactions from leaders
Iranian President Ebrahim Raisi called the deal a “victory for the Iranian nation” and praised the “resistance and resilience” of his country’s negotiators. US President Joe Biden described it as “a crucial step toward a more stable and peaceful Middle East.” The agreement was also welcomed by the United Nations, the European Union, and several Gulf Arab states, including Saudi Arabia and the United Arab Emirates, which have long sought to avoid a full-scale military conflict.
Impact on global markets and oil prices
The news sent oil prices tumbling by more than 8 percent, with Brent crude falling below $70 a barrel for the first time in three months. Analysts said the deal could add up to 1.5 million barrels per day to global oil supplies within a year, easing inflationary pressures worldwide. Stock markets rallied, with the S&P 500 rising 2.3 percent and Tehran’s main index surging 5.1 percent.
Next steps and verification
Implementation will begin within 90 days, with the IAEA tasked with verifying Iran’s compliance. The US Congress will have 60 days to review the agreement, though the administration expects it to survive any legal challenges. Both sides have agreed to establish a joint commission, chaired by Switzerland, to resolve any disputes that may arise.
