. The United States and Iran have signed a preliminary peace deal aimed at ending the ongoing conflict. The two countries are set to formally sign the deal in Switzerland on Friday. Pakistan has said that it has played the role of a mediator.

With the agreement, it has been agreed to reopen the Strait of Hormuz, the main route for global energy supply.TAG_OPEN_p_17 This has had an immediate positive impact on the international energy market, with the price of crude oil falling by more than four percent.

U.S. President Donald Trump and Iranian officials have agreed to a ceasefire, easing economic sanctions and reopening sea lanes, according to media reports.TAG_OPEN_p_16 Pakistan Prime Minister Shehbaz Sharif said on social media that the two sides have agreed to end the military operation.

International crude oil prices fell more than 4 percent to $83.82 a barrel, while U.S. crude oil fell 4.63 percent to $80.95 a barrel.TAG_OPEN_p_15 This is one of the lowest levels in the last few months.

According to analysts, the risk cost added to oil prices has begun to decrease in recent months due to tensions in the Middle East. Expectations of the reopening of the Strait of Hormuz and easing oil supplies have put pressure on prices. Since a large part of the world’s oil trade takes place through this waterway, its operation is seen as very important by the energy market.

Under a preliminary draft of the deal, the United States pledged to ease some economic and oil-related sanctions on Iran, release parts of its frozen assets, and avoid further sanctions.TAG_OPEN_p_13 In return, Iran has agreed not to develop nuclear weapons and to limit its nuclear program.

TAG_OPEN_p_12 However, not all issues related to Iran’s nuclear program have been finalized. The two sides agreed to hold further talks over the next 60 days to reach a comprehensive understanding on nuclear activities, uranium stockpiles and remaining sanctions.

With the news of the peace agreement, there has been a positive impact on the stock markets around the world. Investors are buoyed by expectations that energy supplies will ease and inflationary pressures will ease.

If fully implemented, the agreement is expected to ease tensions in the Middle East, stabilize global energy markets, and have a positive impact on international trade.TAG_OPEN_p_10 However, some regional security challenges remain.