US officials says Iran pact signed, Hormuz traffic will rise significantly

WASHINGTON: The United States and Iran have signed a memorandum of understanding to settle a near four-month war, senior U.S. officials said on Monday, adding that a signing ceremony would take place on Friday and shipping traffic in the strait of Hormuz would gradually ramp up.

The memorandum of understanding has been signed by President Donald Trump and Vice President JD Vance and Iranian parliament speaker Mohammad ​Bagher Qalibaf, one U.S. official said.

Speaking at a briefing with reporters, the U.S. official added that there will also be a signing ceremony on Friday.

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“You will see significant increase in traffic in the Strait of Hormuz, actually starting already, and that will ramp up slowly over time,” the U.S. official, speaking on the condition of anonymity, said.

“We probably won’t return to normal in two weeks, but we will see a significant increase in strait traffic,” the official said.

The U.S. and Iran said they had agreed terms to end their war and reopen the strait, news that brought relief to markets, although the pact may hinge on an end to hostilities in Lebanon and defers talks on Tehran’s nuclear program.

Trump says ships carrying oil are moving out of Strait of Hormuz

While still a framework, the deal marked the biggest breakthrough toward resolving the conflict that has killed thousands and upended energy markets since it began with joint U.S.-Israeli strikes on Iran in February.