The announcement of a peace agreement between the United States and Iran has brought a temporary halt to hostilities in West Asia, but the most challenging phase of negotiations is only beginning.

After more than three months of fighting that destabilised global energy supplies, unsettled financial markets and threatened to escalate into a wider regional conflict, both sides have now agreed to a framework that they hope will secure a lasting end to the war.

US President Donald Trump declared on Truth Social that the deal with the Islamic Republic of Iran was complete, while Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed the framework from Tehran.

The announcement follows weeks of intensive negotiations involving multiple regional stakeholders, including Qatar, Saudi Arabia and Turkey, who facilitated back-channel diplomacy.

Trump also said the Strait of Hormuz — a vital route for global oil shipments that Iran has effectively closed for months — would reopen on Friday. He further announced that the United States would end its blockade of Iranian ports.

"Ships of the World, start your engines. Let the oil flow!" Trump wrote.

The ceasefire provision, though significant, is not the most consequential element of the agreement. At the heart of the framework lies a 60-day negotiation window during which Washington and Tehran must tackle the most contentious and unresolved issues.

These include sanctions relief, Iran’s nuclear programme, mechanisms for reconstruction, monitoring arrangements, and broader regional security concerns. The success of this period will determine whether the peace deal evolves into a durable settlement or collapses under the weight of mistrust and competing interests.

Iran has made clear that its participation in the next phase of negotiations is conditional upon the United States fulfilling its commitments, particularly the lifting of the naval blockade on the Strait of Hormuz and the release of frozen Iranian assets.

Tehran has also emphasised that the memorandum of understanding should not be interpreted as a sign of trust in Washington, but rather as a pragmatic step shaped by military resilience and diplomatic necessity. For Iran, the sacrifices made during the conflict, including the loss of lives, underpin the legitimacy of its negotiating position.

The United States, meanwhile, views the agreement as a strategic opportunity to stabilise the region, restore confidence in global energy markets, and prevent further escalation.

The opening of the Strait of Hormuz, a critical artery for global oil shipments, is expected to ease pressure on energy prices and reassure international investors.

However, Washington remains cautious about Iran’s nuclear ambitions and will likely push for stringent monitoring mechanisms to ensure compliance.

Regional actors are watching closely, as the outcome of the 60-day negotiation period will have far-reaching implications for Lebanon, Syria, Iraq and beyond.

The agreement also carries weight for global powers such as Russia and China, who have vested interests in West Asia’s stability and energy flows. The next two months will therefore be decisive, not only for US-Iran relations but for the broader geopolitical balance in the region.

The guns may have fallen silent, but the diplomatic battle is only beginning. The 60-day clock now ticking will test the resilience of both sides and the credibility of international mediation.

Whether this fragile peace can be transformed into a comprehensive settlement remains uncertain, but the framework has at least created a window of opportunity for dialogue and compromise.

Agencies