Dubai, UAE — U.S. Vice President JD Vance said President Donald Trump could release details of a U.S.-Iran agreement before its formal signing later this week, as oil prices fell to their lowest levels since March on expectations that the Strait of Hormuz will reopen to shipping.
The agreement, aimed at ending months of conflict between Washington and Tehran and launching negotiations over Iran’s nuclear programme, is due to be formally signed on Friday at Switzerland’s Bürgenstock resort near Lucerne, Swiss officials said.
Vance’s comments came as markets reacted positively to signs that traffic through the Strait of Hormuz could soon resume, easing concerns over disruptions to global energy supplies.
Oil prices fell to around $80 a barrel on Tuesday, their lowest level since early March, after Trump reiterated that the strategic waterway would reopen as part of the accord.
Signing preparations advance
Swiss authorities confirmed they have been coordinating with the United States, Iran, Pakistan and Qatar ahead of the planned signing ceremony.
Trump has said a preliminary agreement was already signed electronically, although details of the accord remain unclear and officials on both sides continue to offer differing interpretations of key provisions.
The U.S. president said he would submit the agreement to Congress for review.
Iranian Foreign Minister Abbas Araghchi said negotiations on a final agreement with Washington were likely to begin on Friday, while describing an end to the conflict in Lebanon as a central issue in the talks.
Iran’s deputy foreign minister said the U.S. naval blockade had been lifted, though Iranian state media reported that several Iranian tankers and cargo vessels were still sailing toward Iranian ports despite a U.S. military advisory indicating restrictions would remain in place until Friday.
Hormuz remains a sticking point
Despite optimism surrounding the agreement, uncertainty persists over how shipping will operate through the Strait of Hormuz.
Shipping traffic remains largely stalled, according to vessel-tracking platforms, even as Washington says the route will reopen under the deal.
A dispute has also emerged over charges for vessels transiting the waterway.
U.S. officials have described the agreement as ensuring toll-free passage through Hormuz, while Iranian officials have indicated ships could be subject to maritime service fees rather than transit tolls.
The issue has drawn attention from energy markets and policymakers because roughly a fifth of the world’s oil trade passes through the narrow channel linking the Gulf to global markets.
Regional and international reactions
Qatar, which helped mediate the negotiations, said it was “cautiously optimistic” that the agreement could pave the way for broader regional security discussions.
“We are cautiously optimistic that the signing of the memorandum of understanding will lead to the next phase of regional security,” foreign ministry spokesman Majed Al Ansari said.
The head of the International Energy Agency, Fatih Birol, said the unconditional reopening of Hormuz was essential to easing pressure on global energy markets.
Meanwhile, Hezbollah said it had received assurances from Iran that Tehran would seek the withdrawal of Israeli troops from Lebanon during the next phase of negotiations with Washington.
The agreement also provides a framework for talks over Iran’s nuclear programme, with negotiators expected to begin technical discussions following Friday’s signing.
