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U.S. President Donald Trump said Monday that ships carrying oil have begun moving through the Strait of Hormuz after Washington and Tehran announced they had reached an agreement to end the war.
“Ships are starting to move, many loaded up with Oil, out of the Strait of Hormuz. They are going along the Southern ‘Highway,’ which is totally safe, secure, and pristine,” Trump wrote on his Truth Social platform.
“There are other areas of travel, also!!!” he added.
Pakistani Prime Minister Shehbaz Sharif, whose country led mediation between Washington and Tehran, announced early Monday that the United States and Iran had reached an agreement following intensive negotiations, with both sides declaring an immediate and permanent end to military operations across all fronts, including in Lebanon.
The agreement is expected to be signed in Switzerland on Friday.
European energy stocks fell after details emerged of a reported 14-point draft agreement between the United States and Iran.
According to Iranian reports, the framework includes a permanent ceasefire across all fronts, including Lebanon, a U.S. commitment not to interfere in Iran’s domestic affairs and the lifting of the American naval blockade against Iran.
The reported plan also provides for the reopening of the Strait of Hormuz within 30 days under Iranian regulations, along with the lifting of sanctions on Iranian oil and energy products.
Brent crude prices fell 5% following the developments, while broader markets reacted positively to the prospect of de-escalation. Energy companies, however, came under pressure as investors anticipated that wartime profit gains could fade.
Shares in TotalEnergies and Shell fell 4.8% and 4.7%, respectively, by 12 a.m. GMT. Italy’s Eni declined 4.3%, U.K.-based BP lost 3.6%, and Greece’s Motor Oil Hellas dropped 3.9%.
Despite the reported breakthrough, trade flows through the Strait of Hormuz are expected to take months to normalize fully, with any recovery in regional energy supply likely to be gradual.
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