US Conducts missile strikes as Iran-US talks near ceasefire deal, markets climb

The United States conducted missile strikes on Iranian missile sites and vessels involved in mine-laying, citing self-defense measures, even as negotiations to reopen the Strait of Hormuz and extend a ceasefire between the two countries show significant progress, according to Fortune. These diplomatic efforts reportedly aim for a 60-day ceasefire and potential easing of sanctions on Iran to ensure free shipping through the strategically vital waterway while addressing concerns about Iran’s nuclear program.

President Donald Trump stated on May 25 that negotiations with Iran are advancing favorably, with a delegation led by Iranian Parliament Speaker Mohammad Ghalibaf meeting in Doha to discuss provisional agreements on maritime transit and the unfreezing of Iranian assets, as reported by El Financiero and Rappler. However, key issues such as transit rights and access to frozen funds remain unresolved, delaying a finalized accord.

Market responses to the potential deal have been positive. Oil prices fell sharply by about 5.5%, settling near $97.6 per barrel, as optimism about lower regional tensions increased. Asian stock markets, including in Japan and South Korea, also rose following Trump’s statements on the reopening of the Strait of Hormuz, according to reports from Vanguard Nigeria and MyJoyOnline.

Despite the cautious market optimism, Iran’s government conveyed that while progress has been made on various issues with the US, a comprehensive agreement is not imminent, underscoring ongoing uncertainty, according to Dawn and Semafor. US Secretary of State Marco Rubio also pointed to continuing disagreements that may complicate reaching a final deal.

Moving forward, the international community is closely watching whether the two sides can resolve outstanding disputes and formalize the ceasefire extension and navigation arrangements. The outcome will be critical for regional stability, global oil markets, and diplomatic relations involving Iran, the US, and Gulf states.