US and Iran Halt Strikes, Set Tuesday Talks on Hormuz Control

Shipping lanes through the Strait of Hormuz carry roughly one-fifth of global oil supplies, and the risk of renewed closure sent immediate ripples through energy markets. After three days of strikes that began with an Iranian drone hitting a Singapore-flagged cargo ship on Thursday, the United States and Iran agreed Sunday to stop firing at each other and resume technical talks on Tuesday in Doha.

The sequence started when Iran rejected new shipping coordinates near Oman and struck the vessel. The United States responded Friday with strikes on Iranian drone storage, radar, and missile sites along the southern coast. Iran then fired at U.S. facilities in Kuwait and Bahrain on Saturday and Sunday; Bahrain reported damage to a residential building and Kuwait intercepted two ballistic missiles. A Qatari citizen was killed by shrapnel from regional operations, according to Qatar’s Interior Ministry. President Trump posted on Truth Social that further Iranian violations could force the United States to “militarily complete the job,” while Iranian Revolutionary Guard statements warned of a complete halt to diplomacy.

A senior U.S. official told multiple outlets that both sides would stand down, vessels could move freely, and technical teams would meet to address implementation of the June 17 memorandum of understanding. Iranian Deputy Foreign Minister Kazem Gharibabadi told state media that no technical talks had been confirmed. The underlying dispute remains who administers traffic through the strait: Iran asserts sole responsibility under the memorandum, while the United States rejects any tolls or Iranian oversight of routes.

Markets registered the pause quickly. Oil prices eased and equities rose Monday morning. The two sides still face a 60-day window to convert the memorandum into a final agreement that would also address frozen Iranian assets and the nuclear file.