World leaders expressed hope for peace agreement

Defense Minister Israel Katz said on Monday that Israel will not withdraw from land it has seized in southern Lebanon.

Katz’s comments were the first official Israeli comments after the United States and Iran overnight announced a preliminary peace deal, which is due to be signed on Friday.

Iran has reached a deal to halt Israeli attacks against Hezbollah in Lebanon, although exact terms have not been announced.

However, in his remarks on Monday, Katz said that if Iran attacked Israel because of its actions in Lebanon, Israel would retaliate by attacking Iran with “greater force.”

The detailed terms of the agreement to be signed in Switzerland on Friday have not yet been made public. Here’s what we know so far:

• According to Trump, the Strait of Hormuz will reopen after the agreement is signed on Friday. Tehran reiterated that timeline.
• A more comprehensive agreement is to be negotiated during the 60-day ceasefire period.
• Iran’s nuclear program will be addressed over a period of 60 days.
• Relief from Iranian sanctions will also be discussed.
• Pakistan, which announced the agreement, has insisted that it also includes Lebanon. Israel, which continues its fight against Hezbollah, has not yet commented.
• On Saturday, Trump said the deal would not include Iran handing over its enriched uranium. This was a key condition of Israel, which was not included in the negotiations.

On Monday, EU High Representative for Foreign Affairs Kaja Kallas welcomed a preliminary agreement between the US and Iran to end the war.

“This marks a potential breakthrough,” Callas wrote on X.

Kallas said he had spoken to his Iranian and Gulf counterparts in recent days. He said EU foreign ministers meeting on Monday would discuss how to engage more closely in the coming phase.

“From economic benefits to nuclear expertise and long-term relations with Gulf partners, the EU is ready to contribute to a sustainable solution,” Kallas said.

Oil prices fell and stocks rose on Monday after Washington and Tehran announced a temporary peace deal that would reopen the Strait of Hormuz.

Brent crude oil – the international standard – fell more than 4% in early trading to $83.82 a barrel.

“Ships of the world, start your engines. Let the oil flow!” Trump posted his Truth on social platforms.

Stock markets also reacted positively to this news. In Asia, Japan’s Nikkei and South Korea’s KOSPI each rose more than 5%. On Wall Street, S&P 500 futures were up 1% and Dow Jones Industrial Average futures were up 0.9%, pointing to possible early gains.

But it may still be several months before oil prices stabilize, while shipping and insurance companies will also want to be reassured that this latest ceasefire announcement will hold.

“Markets will be cautious not to get too optimistic as they monitor the actual resumption of traffic in Hormuz,” analysts at Japan’s Mizuho Bank said in a note.

Meanwhile, as Europe woke up on Monday, European Central Bank President Christine Lagarde told France Culture Radio that the ceasefire deal with Iran was “good news”.

Good morning and welcome to DW’s coverage of the Iran war as we follow the announcement of the peace agreement between the United States and Iran.

On Monday, the EU’s foreign policy chief, Kaja Kallas, hailed the “potential breakthrough.” He said he hoped this would help tackle the global energy crisis.

Oil prices fell immediately after the announcement, but analysts believe it will take several months for prices to truly stabilize if this latest announcement holds up.