US-Israel war on Iran

The value of Iran’s currency has risen by more than 15 percent against the US dollar, and its stock market has shattered records in the wake of the memorandum of understanding agreed between the United States and Iran on Sunday.

However, Iranians suffering for years from extremely high inflation and a plunging rial have found little economic relief as the prices of basic goods, such as food, remain high despite the diplomatic breakthrough.

The Iranian economy has suffered due to decades of US sanctions. The economic crisis was exacerbated after the US and Israel launched a war against Iran on February 28. As subsequent US naval blockade on Iranian ports further added to the misery of Iranians.

In Ferdowsi Street, the beating heart of Tehran’s foreign exchange market, the scene on Thursday was a stark departure from the panic of recent months. Exchange office boards flashed rapidly changing numbers as foreign currencies, led by the dollar, took a sharp dive.

“We closed our doors just hours before the official announcement of the US-Iran understanding at a rate of 1.8 million rials to the dollar,” Amir, a 35-year-old exchange office worker who asked to remain anonymous, told Al Jazeera. “Now it has fallen to 1.54 million rials, and we expect further declines.”

Amir noted a significant increase in sales volumes although buyers remained scarce as many anticipated the rial would strengthen further, potentially dropping to 1.4 million to the dollar or lower.

The recent gains mark a sharp turnaround. After the outbreak of the war, the exchange rate jumped to a historic peak of 1.9 million rials (190,000 tomans) to the dollar in March before settling at about 1.685 million just before recent attacks carried out despite a ceasefire.

A disconnect in the grocery aisles

Despite the rial’s recovery, a walk through Tehran’s grocery stores reveals a starkly different reality. For Iranians grappling with the economic fallout of crippling sanctions and the US naval blockade, the diplomatic thaw has yet to lower the cost of living.

Reza, a 42-year-old Tehran resident, told Al Jazeera that prices for daily staples like milk, cheese, cooking oil and flour remain unchanged. “They say the dollar dropped, but my shopping basket costs the same as last week,” he said. “This means the agreement hasn’t reached our pockets yet.”

From behind the cash register, 55-year-old shop owner Ramin echoed his customer’s frustration. He explained that while the government continues to distribute subsidised goods like bread, the fluctuations of the free-market dollar do not immediately impact basic food prices.

The value of the dollar on the free market varies from the official exchange rate.

Pointing to a shelf of imported goods, another shopkeeper named Karim noted that items like shampoo, toothpaste and laundry detergent are still locked at inflated prices.

“Distributors say they bought these goods two months ago at the old dollar rates,” Karim explained. “Prices will remain high until the old stock runs out and new goods enter at the lower exchange rates.” He estimated it would take at least two weeks for the market to adjust, meaning Iranians will continue to face compounding inflation in the interim.

Euphoria on the trading floor

While Main Street struggles, Tehran’s stock market is experiencing an unprecedented boom amid expectations of improved economic conditions. The trading floor has been awash in green since the initial leaks of the Washington-Tehran agreement emerged.

On Monday, the main index jumped by a record-breaking 161,000 points in a single session, marking the highest-ever influx of cash from individual investors.

By Tuesday, the market continued its staggering ascent, climbing another 112,000 points to cross the psychological barrier of 5 million, ultimately settling at a historic high of 5.1 million.

Saeed, a 40-year-old investor, called it a “historic day”. He noted that investors are rushing to buy shares in the energy and petrochemical sectors, betting heavily on the resumption of exports and the reopening of global markets.

However, Saeed remained cautiously optimistic. “The stock market is often driven by rumours,” he warned. “I don’t want to repeat the experience of the 2015 nuclear deal when the market soared and then collapsed after the US withdrawal.”

He was referring to US President Donald Trump’s 2018 withdrawal from the agreement, under which Iran agreed to restrictions on its nuclear programme in exchange for sanctions relief.

Stagnation in real estate and electronics

The wait-and-see approach in effect has paralysed other sectors of the economy. In central Tehran’s electronics hubs, 38-year-old shop owner Reza reported that while the prices of imported appliances have dropped in tandem with the dollar, sales have stalled because customers are holding out for steeper discounts.

A similar freeze has gripped the housing market. Nasrin, a 36-year-old real estate agent in northern Tehran, observed that a recent price surge that accompanied the initial truce has now given way to stagnation. Many property owners are clinging to inflated prices, seemingly unaware that the market dynamics have shifted, bringing property transactions to a virtual standstill.

‘Not a magic wand’

For macroeconomic experts, the mixed market signals are entirely expected. Hossein Selahvarzi, the former head of the Iran Chamber of Commerce, Industries, Mines and Agriculture, cautioned that the new agreement is “not a magic wand” capable of instantly fixing years of structural issues in the economy.

While the war severely damaged Iran’s infrastructure, Selahvarzi emphasised that the roots of the country’s economic malaise were firmly planted well before the bombing began.

“War is the enemy of investment, production, trade and public welfare,” Selahvarzi told Al Jazeera. He warned against the analytical mistake of believing that a peace memorandum alone would revive the economy.

“Ending the military confrontation does not necessarily mean the beginning of economic prosperity,” he said, stressing that restoring stability to the business environment remains the country’s most urgent priority.

“What we have before us is a limited and fragile opportunity to correct course and rebuild the economy, and this opportunity could be lost quickly if not managed correctly.”

Israeli Prime Minister Benjamin Netanyahu is facing mounting pressure after he was cut out of the US-Iran agreement. Crucially, the Memorandum of Understanding includes Israel’s war on Lebanon. Al Jazeera’s Nour Odeh explains.

Brent crude drops as much as 1.6 percent, while key stock indices in Japan, South Korea and Taiwan climb.

Oil prices have dropped following the United States and Iran’s signing of an interim peace agreement, resuming a slide interrupted by US President Donald Trump’s warning that he could restart his military campaign.

Brent crude fell as much as 1.6 percent on Thursday morning in Asia, returning the international benchmark to almost exactly where it was 24 hours previously.

Brent futures for delivery in August stood at $78.23 as of 04:00 GMT, only about 7 percent higher than before the US and Israel launched their war on Iran on February 28.

After several days of declines, Brent briefly spiked above $81 a barrel on Wednesday after Trump warned that the US could “go right back to dropping bombs” on Iran if it doesn’t “behave”.

Asian stock markets rallied on Thursday on renewed optimism for an end to nearly four months of disruption to global energy supply chains.

Japan’s benchmark Nikkei 225 and South Korea’s Kospi both hit all-time highs, gaining 1.8 percent and 1.4 percent, respectively.

Taiwan’s Taiex rose as much as 1.3 percent.

Hong Kong’s Hang Seng Index bucked the trend, dropping 1.7 percent.

US stock futures, which are traded outside of regular market hours and often foreshadow the next day’s performance, climbed, with those tied to the benchmark S&P 500 and the tech-heavy Nasdaq Composite climbing about 0.8 percent and 1.3 percent, respectively.

Pakistani Prime Minister Shehbaz Sharif, who mediated the negotiations between Washington and Tehran, said on Wednesday that the US-Iran memorandum of understanding (MoU) had entered into force with “immediate effect”.

Sharif said Iran would “instantly reopen” the Strait of Hormuz and the US would “immediately” lift its naval blockade of Iranian ports, though it was not immediately clear if the announcement had any effect on boosting maritime traffic in the critical waterway.

Shipping in the strait has been reduced to a fraction of peacetime levels due to the threat of Iranian missiles, drones and mines, as well as the US blockade.

While more than 500 vessels are estimated to be waiting to exit the Gulf through the strait, shipping companies have expressed concern about the lack of clarity on how to ensure the safety of their vessels and crews in the channel.

In a statement earlier this week, the Baltic and International Maritime Council (BIMCO), one of the world’s largest associations for shipowners, said the US and Iran had yet to provide information about “key aspects such as timings and safe routes”.

“Due to lack of details and a history of overly optimistic reassurances, we believe the security situation for the shipping industry remains volatile, and we still consider it very risky for ships to commence transits at this point,” Jakob Larsen, chief safety and security officer at BIMCO, said in a statement on Monday, responding to the initial announcement of the MoU.

“We advise shipowners to continue doing thorough risk assessments and appeal to all parties to put the safety of seafarers first.”

Iran’s Ministry of Foreign Affairs spokesperson, Esmaeil Baghaei, has announced that a memorandum of understanding with the United States has been finalised and signed electronically by both sides.

He added that the agreement has already gone into effect.

“The text of the Islamabad Memorandum of Understanding was finalised with the signatures of the presidents,” Baghaei told the news agency IRNA. “Now it is time to test the implementation of the agreement.”

Wednesday’s statement appears to confirm that the US and Iran have agreed to suspend military operations, paving the way for further negotiations.

Given that both sides signed the agreement electronically, Baghaei noted that there would be no signing ceremony on Friday in Geneva, Switzerland, as had previously been expected.

Negotiating teams, however, still plan to be in the Swiss city. A decision on a possible in-person meeting between them is expected in the coming hours, though for now such plans are paused, according to Baghaei.

While the office of US President Donald Trump has yet to issue a formal statement on the signing, Al Jazeera correspondent Mike Hanna explained that a White House spokesperson confirmed earlier in the day that it happened.

But Hanna warned that the memorandum is likely to face domestic backlash in the US, where Trump had been under right-wing pressure to take a hard line against Iran.

“There’s a great deal of dissatisfaction with the memorandum of understanding, as it has been outlined to the public at this particular point, even among some Republicans who have expressed the concern that Iran is being treated leniently,” Hanna said.

He also emphasised the administration’s position that the memorandum is not a full-fledged deal but rather a prelude to more negotiations.

“The administration is fighting hard to persuade the American public and American politicians that this is not a defeat for the United States,” Hanna said.

Since February 28, the US and Israel have been jointly engaged in a war against Iran, though a temporary ceasefire suspended much of the most intense fighting on April 8.

Trump has repeatedly said his goal in launching the war was to prevent Iran from acquiring a nuclear weapon.

Since the memorandum was revealed, he has highlighted the document’s assurances that Iran will not seek a nuclear weapon, though Tehran has long denied any intention of doing so.

But according to a US account, the memo goes beyond the question of nuclear weapons. It sets up a 60-day timeline for a final deal to be struck, and it indicates that the US will rally “regional partners” to create a $300bn for Iran’s reconstruction.

US sanctions would also work towards lifting its sanctions against Iran, and the country would issue waivers for the export of Iranian fuel.

Iran has touted those terms as a victory. On Wednesday, chief negotiator Mohammad Bagher Ghalibaf told Fars, an Iranian state news agency, that the US had failed to achieve its goals with Iran and pointed to the memo as proof.

“The agreement is a record of US failure,” Ghalibaf said. “People will see it and judge.”

He also explained that the Strait of Hormuz would not return to “pre-war conditions” after the 60-day period for negotiations stipulated in the agreement. He suggested that Iran will expect payments for use of the waterway.

“I emphasise again that the Strait of Hormuz will never return to the previous conditions,” Ghalibaf said.

“Iran has the right to sovereignty over the Strait of Hormuz, and of course, we will receive a fee for services.”

That position is likely to put pressure on the Trump administration, which had pledged that the strait, a key waterway for trade, would be “permanently toll-free”.

Since the start of the war, Iran has blocked the waterway, sending global prices for fuel, fertiliser and other goods soaring.

The US had responded with its own blockade of Iranian ports, though that effort is slated to end under the memorandum.

Both sides, however, have emphasised that the memorandum of understanding is not a final agreement on all issues of dispute. More negotiations are expected to resolve lasting impasses.

“It will only become a deal, as such, at the end of the 60-day negotiation period. At least, that’s the intention,” Hanna reported.

Israeli air strikes have continued to target towns in southern Lebanon despite an agreement between the United States and Iran set to be formally signed on Friday to end the war on all fronts.

Israeli drones carried out three attacks in Tyre that resulted in injuries while a drone also targeted the Bint Jbeil district in Nabatieh, Lebanon’s state-run National News Agency said on Wednesday.

The fighting in Lebanon is considered one of the biggest threats to the framework agreement in the US-Israel war on Iran with Tehran warning that new Israeli strikes on Lebanon and continued occupation of its territory would be regarded as a violation of the deal.

Earlier on Wednesday, Al Jazeera Arabic correspondents on the ground reported that Israeli forces carried out an air strike on the outskirts of Kfar Tebnit, also in the Nabatieh district. They also launched raids on the town of Nabatieh al-Fawqa and shelled the Ali al-Taher heights and the outskirts of the town.

Hezbollah fighters, meanwhile, launched at least 10 rockets towards Israeli forces near Kfar Tebnit.

A day earlier, Israeli attacks killed at least four people in Nabatieh, including in drone strikes on several vehicles.

There has been a reduction in violence since the US-Iran agreement was announced, but attacks have not stopped, Al Jazeera’s Zeina Khodr said, reporting from Beirut.

“Security sources believe that the Israeli army is trying to occupy more ground, especially strategic high ground around Nabatieh,” she said.

“Yes, families have started to return to their villages, but people are worried. They say they don’t trust that Israel will abide by the ceasefire.”

United Nations spokesperson Stephane Dujarric said the number of projectiles fired between Israeli forces and Lebanon fell to 174 on Sunday, compared with 705 the previous Sunday.

Of these, 169 were attributed to Israel and five to Hezbollah, he said.

Lebanon ‘most sensitive issue between the sides’

The situation in Lebanon is one of the main pillars of the US-Iran agreement, Al Jazeera’s Almigdad Alruhaid said, reporting from Tehran.

“As we approach the signing of the deal, it is becoming the most sensitive issue between the sides,” Alruhaid said.

Iran said the Israeli military has violated the ceasefire in Lebanon 84 times in the past two days and warned that Israel should expect “a harsh response” if it does not stop its attacks, he reported.

This came after Iranian Foreign Minister Abbas Araghchi said the withdrawal of the Israeli military from Lebanese territory is one of the core demands right now to move forward with the framework agreement Iran has with the US, Alruhaid said: “So the Iranians say the situation in Lebanon, in particular southern Lebanon, is an integral part of the memorandum of understanding.”

Lebanon was among the top priorities for the Iranians when they started negotiations with US President Donald Trump’s administration, according to Mohammad Eslami from Tehran University.

“Once the Iranians not only retaliated against the Israeli attacks on Dahiyeh and Beirut but also pre-emptively attacked Israeli territory, they showed right from the outset they are determined and very serious about supporting Lebanon, the Lebanese people, the Lebanese government and the resistance factions in Lebanon,” Eslami told Al Jazeera.

Israel’s invasion akin to ‘war crimes’

Meanwhile, the human rights group Amnesty International said on Wednesday that the Israeli army’s mass forced displacement orders in Lebanon amount to war crimes under international law.

“In parts of southern Lebanon, the Israeli military’s forced displacement of civilians and prevention of their return amounts to unlawful transfer – which is a war crime,” Amnesty said in a statement.

The Israeli army has “radically expanded” its use of such orders, displacing hundreds of thousands of people across Lebanon, it said.

“Instead of forcibly uprooting communities and designating entire swathes of Lebanese land as ‘no-go zones’ for civilians, Israeli forces must immediately withdraw from Lebanese territory,” said Kristine Beckerle, Amnesty International’s deputy regional director for the Middle East and North Africa.

The Israeli military declared about 4.6 percent of Lebanon as a “no-go zone” on November 28, 2024, a day after a previous ceasefire took effect, Amnesty noted.

This year, just three days after an April 17 ceasefire announcement, the restricted area was expanded to about 6 percent of the country, and residents were ordered not to return to villages previously home to tens of thousands of civilians.

Lebanese officials said Israel, which has been carrying out a large-scale offensive in the country since March 2, has killed more than 3,800 people, wounded 11,850 and displaced more than one million.

US President Donald Trump has accused his predecessor Barack Obama of ‘bribing’ Iran to agree to the 2015 nuclear agreement, by referring to a $1.7B settlement of a decades-old lawsuit. He used profanity in his brief comments to the media alongside Egyptian President Abdel Fattah el-Sisi.

Mehdi Torabi issued a new visa after previous one expired when team returned to Mexico following the New Zealand game.

United States officials have confirmed that Iran’s team will have to leave the country within hours of the full-time whistle at their World Cup group games in Los Angeles and Seattle.

The response from the World Cup 2026 cohost nation came on Tuesday following criticism of its handling of the Iranian team’s visa and stay in the US after their first game.

“We were clear this was the process,” Andrew Giuliani, the executive director of the White House FIFA Task Force, told The Associated Press news agency.

Team Melli drew with New Zealand in a politically charged Group G game in Los Angeles on Monday following months of uncertainty over the team’s participation in the World Cup amid the US-Israel war on Iran.

The Iranian delegation left the US hours after the match ended at about 8pm local time (03:00 GMT) and returned to their base camp in Mexico, prompting criticism of the US handling of their visas as the team did not get a day to recover at their hotel.

Iran coach Amir Ghalenoei said after the match that his team had been ordered to leave the US and return to Mexico only a few hours later. Ghalenoei said the team had expected to spend the night in California to maximise the normal recovery process after their opening game.

The US faced further pushback as Iran winger Mehdi Torabi’s entry visa expired after the first game. Team officials confirmed Tuesday afternoon that they had secured him a new, multiple-entry visa allowing him to travel into the US for future matches.

“This issue has been resolved,” the US Department of State said.

“As soon as we became aware of the issue, we worked to ensure that the player can participate in every game.”

Giuliani said during an interview broadcast Monday night on CBS News that some of the Iranian team’s support staff and team officials were denied entry into the US, but all the players and coaches had received visas.

He also outlined the conditions by which the Iranian team would be able to come into the US for their games.

“The team will be allowed to come in, match day minus one, so the day before the match. They’ll be asked to leave the day that the match wraps up, so the evening of the match. And they’ll be able to do that again in Los Angeles. They’ll be able to do it again in Seattle,” Giuliani said.

When asked about why some support staff and team officials had been denied entry, Giuliani wouldn’t go into details but referred to previous comments made by Secretary of State Marco Rubio about denying entry to people with direct ties to Iran’s Islamic Revolutionary Guard Corps (IRGC).

“Secretary Rubio said very clearly: Anybody with direct ties to the IRGC is not coming into the United States of America, and they’re not going to let the World Cup be the reason why they can come in,” Giuliani said. “So I think it’s very clear why.”

Iran captain Mehdi Taremi said the team endured five hours of travel and security checks during what’s normally a very short trip from Tijuana to the Los Angeles area on Sunday.

“I think FIFA have to help us more than this,” Taremi said.

FIFA President Gianni Infantino praised Iran’s players during a World Cup dressing room visit after the team’s 2-2 draw with New Zealand on Monday.

The US-Iran memorandum of understanding expected to be formally signed in Switzerland on Friday could allow for the establishment of a $300bn investment fund for Iran, as part of a broader settlement to end the war that triggered a global energy crisis and upended markets worldwide.

US Vice President JD Vance told CBS News on Monday that the incentives would be connected to Iran’s “performance” in adhering to the deal, which was digitally signed by both sides on Sunday.

The scale of the financial incentives grabbed the headlines due to US President Donald Trump’s longstanding criticism of a 2015 nuclear accord that he claimed delivered economic benefits to Tehran.

In a bid to manage perceptions around this politically sensitive issue, Trump took to his Truth Social platform to claim that “the story that the US is paying Iran 300 million Dollars is Fake News,” while Vance told CBS News that the money would not be a US payout in exchange for Iran’s enriched uranium.

“When people say that billions of dollars of assets will be released, that’s not true,” the vice president told the CBS Morning programme. “What is true is that Iran will have a much better and much more prosperous future if they meet the obligations they make in this agreement.”

What do we know about the $300bn investment fund?

Vance said the deal “fundamentally extends a hand to Iran and says, ‘Look, if you guys are willing to honour your obligations, if you’re willing to allow real inspections of your nuclear programme, then we will welcome you back into the world economy.’

“That’s the sort of thing they could have access to, funded by the Gulf Coast coalition, so long as they honour their end of the obligation,” Vance told CBS. He also claimed that while US money would not be injected, economic opportunities could arise once Iran repositions itself in the global economy.

The New York Times quoted sources saying the fund would not come from governments but be created for companies eager to invest in Iran.

Muhanad Seloom, a non-resident senior fellow at the Middle East Council on Global Affairs, said the setup was a no-lose solution for Washington. “If Iran reforms, the administration owns the peace; if it doesn’t, the US loses nothing and the Gulf carries the risk,” he told Al Jazeera.

What about the Iranian frozen assets?

Seloom said the idea of an investment fund was built precisely to escape the optics of releasing Iran’s frozen funds. While the exact amount of Iran’s frozen assets is unclear, official Iranian reports and experts have set the total amount at more than $100bn.

Iran’s economy has been crippled due to years of sanctions imposed on the country by the United States and other nations following the Islamic revolution in 1979, and then amplified over Iran’s nuclear and ballistic missiles programmes. These measures have restricted Tehran’s ability to access its own assets, such as revenues from oil sales, which have been frozen in foreign banks.

Tehran was granted sanctions relief in the wake of the landmark 2015 nuclear deal signed under President Barack Obama, but Trump tore it up in 2018 during his first term. The 2015 deal had put limits on Iran’s nuclear enrichment in exchange for sanctions relief.

Iran’s state-affiliated Mehr News agency reported on Sunday that the 14-point draft memorandum of understanding provided for the release of $24bn in frozen Iranian assets.

Pressed by CBS News on the possibility of releasing frozen funds, Vance said the $24bn figure “just doesn’t appear anywhere in any of the texts that we’ve talked about with the Iranians”.

“What we have said is that we’re willing to talk about unfreezing assets, but a much, much bigger deal is unsanctioning their economy – so long as they make the long-term commitments on the nuclear programme,” the vice president added.

For Iran, where the war inflicted an estimated $29bn damage and the population is struggling with the highest inflation rate since 1942, the investment fund may constitute a much-needed lifeline.

But the optics will not be as favourable, raising a “dignity problem”, Seloom said. “Tehran reads this as supervised, conditional money rather than sovereign relief,” the analyst told Al Jazeera.

Which other contentious issues will be discussed after signing the deal on Friday?

One of the US’s main declared objectives has been to assuage concerns surrounding Iran’s nuclear programme, including a stockpile of more than 440kg (970lbs) of enriched uranium.

The memorandum extends an existing ceasefire arrangement for another 60 days, during which the two sides are expected to hold further negotiations on issues including the disposal of the enriched uranium.

Vance said Tehran had agreed to surrender its stockpile, undergo regular inspections and refrain from producing or buying nuclear weapons, but the full text of the memorandum of understanding has yet to be disclosed.

The reopening of the Strait of Hormuz, which has been subject to competing blockades by the US and Iran, has also been a point of contention. Trump suggested an agreement to reopen the waterway had been reached when he announced a deal on Sunday with the words: “Let the oil flow!”

Speaking to CNBC, however, Vance acknowledged that not all sticking points surrounding the passageway had been resolved. “Well, our expectation is that the strait is gonna be opened in a toll-free way for the long term, and that’s the sort of thing that we’re gonna figure out in these technical negotiations,” he said.

Israel’s ongoing aggression on Lebanon is also expected to create friction, as Iran has insisted any ceasefire deal must include the allied nation. Israel has so far rejected any arrangement that would limit its ability to strike what it says are Hezbollah targets. Defence Minister Israel Katz on Friday said the military would continue operating in Lebanon regardless of any agreement with Tehran.

Mixed reactions to the agreement

Iranian ⁠⁠Foreign ⁠⁠Minister Abbas Araghchi said the memorandum of understanding would reap economic benefits for Iran but stressed that Tehran would not rely on those benefits for all of its needs.

“We have a history of broken promises, non-compliance, and the tearing up of agreements,” Araghchi said on Monday, according to Press TV. He said discussions about the lifting of US sanctions and Iran’s nuclear programme would be held during a 60-day period of negotiations following the official signature on Friday.

Iran’s new supreme leader, Mojtaba Khamenei, has yet to comment. Some Iranian observers objected to the timing of the announcement, which coincided with Trump’s birthday. Referring to the assassination of former Supreme Leader Ayatollah Ali Khamenei at the beginning of the US-Iran war, conservative journalist Parisa Nasr wrote on X: “Was giving a birthday gift to the killer of the martyred Leader also one of the unwritten conditions of the deal?”

Iranian President Masoud Pezeshkian said Iran’s Supreme National Security Council had approved the deal so that “America’s genuine commitment to respecting the rights of the Iranian nation could be tested in practice.”

Speaking at the G7 summit in France on Tuesday, Trump described the deal with Iran as “fair”, “good”, and under which Iran “can’t have a nuclear weapon” or “they get blown up.”

Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, who is also attending the summit, said the Iran-US agreement will result in positive outcomes for the region.

“This is a very important deal, there’s still a lot of work to be done, but with this momentum – if we continue like that, Mr President – I think we can achieve and do great things in the region,” Sheikh Tamim said.

US Democratic lawmakers welcomed a deal to halt the war with Iran but stressed that its terms must be made public. Senator Gregory Meeks said “any final agreement must be durable, enforceable, transparent” and more than “vague announcements or political spin”.

US Republican Senator Lindsey Graham on Sunday said he was “pleased” about the deal but also “somewhat concerned that Iran’s view of the agreement seems different than what the American negotiating team is claiming”.

Seloom, at the Middle East Council on Global Affairs, said the different narratives underlined that the two sides were “not really talking to each other”. “They’re talking past each other, to domestic audiences,” he said. “Each side has to sell this as a victory it cannot sell honestly.”

Los Angeles – “I’m sure when we score a goal today, everyone will be cheering.”

That was the prediction of Iranian fan Parsa Tafreshi, who had travelled from New York to Los Angeles to see Iran take on New Zealand on Monday.

His words would prove largely true.

The game ended in a thrilling 2-2 draw, and each time Iran – known as Team Melli – scored, the stadium erupted in deafening celebrations.

There were two opposing sets of Iranian flags in Los Angeles, home to a large Iranian American community that is largely staunchly opposed to the governing system in Tehran.

Some fans waved the Islamic Republic flag, adorned with the name of God. Others opted for the pre-1979-revolution flag featuring the lion and sun, used by the Iranian opposition.

But when Team Melli were building up an attack, their supporters sang in unison.

Chants of “Iran, Iran” rang throughout the stadium, and the fans held their breath collectively each time Iran’s attackers came near New Zealand’s goal.

Concerns of unrest around the game did not materialise. Iranian fans vastly outnumbered their New Zealand counterparts at the stadium, and the game ended without any major incident.

Anti-team protest

A small group of demonstrators had gathered outside the venue, waving Israeli flags and chanting in support of opposition figure Reza Pahlavi.

They also called on United States President Donald Trump to resume the war with Iran, although Washington and Tehran have already reached a ceasefire deal.

“President Trump, finish the job,” they chanted on a loud megaphone.

Protesters also shouted slogans against the Palestinian group Hamas and Lebanon’s Hezbollah.

One of the demonstrators held a banner featuring the faces of Team Melli players with red crosses on them.

“IRGC Team,” it said, referring to Iran’s Islamic Revolutionary Guard Corps, with red ink meant to resemble blood dripping from the letters.

Protester Kourosh Kiumarsi told Al Jazeera that the Iranian squad is the “regime team”.

Asked about the Israeli flags at the demonstration, he said: “Israel and the USA attacked the regime and helped the people of Iran. They are not at war with Iran. They are at war with the Islamic Republic regime.”

Despite the intensity of the slogans at the protest, it was small and contained.

“I love that all the hype was just outside of the stadium,” said Sudi Farokhnia, who wore a green, white and red wig and a shirt featuring the lion and sun flag.

“Once you walked into the stadium, all you could hear was Iran, Iran, Iran. The energy was amazing. The people were amazing,” she told Al Jazeera after the match.

But that does not mean the entire affair was apolitical.

It would be difficult to argue that the pre-revolution flag is not a political statement.

FIFA bans political symbols at international matches, but thousands of Iranian fans on Monday were able to come in with lion-and-sun flags, shirts and hats.

Many also wore political slogans like “Make Iran Great Again” and “free Iran”.

FIFA did not respond to Al Jazeera’s request for comment on the issue.

Minab message

There were also other political expressions at the match.

Arash, an Iranian fan who asked to be identified by his first name only, wore a shirt that said “Mibab 168” on the back.

The US-Israel war on Iran killed hundreds of civilians, including 168 children at a girl’s school in the southern city of Minab, during the first day of the conflict.

“This is not a political shirt. This is not just to send a political message,” Arash told Al Jazeera.

“It’s a simple, simple statement: Schools are sanctuaries, whether it’s school shootings, bombings. School is a place of virtue. It’s a place of learning. It’s a place that – no matter who you are, what you believe in, what country – school should be off limits.”

Inside the stadium, a group of Iranian fans also revealed a “MINAB 168” message during the game.

There were also Palestinian and Israeli flags visible in the stands.

The match kicked off with a political message: Many fans jeered the Iranian national anthem, which opposition activists see as representative of the government.

Iran’s participation in the tournament was in peril earlier this year because of the war. Team Melli were forced to stay in Mexico as their base camp, while all their group-stage matches were in the US, because the Trump administration refused to host them.

Once the ball was kicked, however, that all faded into the background.

It was 11 versus 11. And the football delivered excitement, joy and disappointment.

Iran dropped two valuable points against a lower-ranked team, but came twice from behind and hit the woodwork once.

And each of the two times the net bulged, the goals brought happiness to a nation with two flags at home and abroad that has gone through war and immense hardship.

There was a number of protesters outside.

But when Iran scored, almost all Iranians cheered.

Benchmark S&P 500 rises 1.7 percent, while tech-heavy Nasdaq jumps 3.1 percent.

US stocks have rallied on hopes that the tentative deal to end the US-Israel war on Iran will restore stability to energy supply chains roiled by months of disruption in the Strait of Hormuz.

The S&P 500 rose 1.7 percent on Monday, taking the benchmark index within touching distance of its all-time high.

The tech-focused Nasdaq Composite jumped 3.1 percent, aided by a 19.6 percent gain by SpaceX, which on Friday made the biggest market debut in history and minted the world’s first trillionaire in Elon Musk.

The blue-chip Dow Jones Industrial Average climbed 0.9 percent, closing at a record high.

Brent crude futures, the primary benchmark for global oil prices, fell nearly 5 percent to just above $83 a barrel, the lowest price since the first week of the conflict.

Asian stock markets were largely flat on Monday morning, after surging the previous day on the back of US President Donald Trump’s announcement of his deal with Tehran.

As of 01:30 GMT, Japan’s benchmark Nikkei 225 was 0.01 percent lower, while South Korea’s Kospi, the best-performing major index this year, was down 0.06 percent.

In Taiwan, the TAIEX was up 0.2 percent.

Hong Kong’s Hang Seng Index was down 0.07 percent.

Jay Goldberg, a senior analyst for tech-related equities at the Chicago-based Seaport Research Partners, said the announcement of the US-Iran deal had tilted investors’ risk balancing act towards buying into the market.

“To oversimplify, the debate has been: AI spending is strong, but there’s a war going on,” Goldberg told Al Jazeera.

“The war is over, it seems, so that side of the argument falls away. Investors are now feeling better about taking on more risk,” Goldberg said.

While Washington and Tehran’s framework has raised hopes for a return to stability in global energy markets, it is expected to take months before energy flows fully return to normal, due to the massive backlog of vessels around the Strait of Hormuz and the need to ensure the waterway is safe from Iranian naval mines.

According to the International Shipping Chamber, about 500 ships are still waiting to pass through the strait, which normally carries about one-fifth of global supplies of oil and liquefied natural gas.

The preliminary deal to end US-Israel war on Iran has sent oil prices tumbling to a three-month low amid hopes that the Strait of Hormuz will reopen.

But it could be months before American consumers see major relief at the petrol pump.

The closure of the strategic chokepoint disrupted global energy markets for more than three months, cutting off a major shipping route through which roughly one-fifth of the world’s oil and liquefied natural gas normally passes.

On Sunday, US President Donald Trump said prices would “drop like a rock” once the strait reopens, a claim he has made multiple times in the past few weeks.

However, experts caution that a major decline in prices is unlikely to happen as quickly as Trump suggests.

While Asian markets rely more heavily on oil shipped through the Strait of Hormuz than North American markets, tighter supply and steady demand have pushed prices higher worldwide.

On Monday, petrol prices in the US remained above $4 per gallon (3.78 litres), averaging $4.06 nationwide, according to the American Automobile Association (AAA). This was a dip from a high in early May of $4.48 per gallon.

By comparison, prices stood at $2.98 per gallon on February 28, when the US and Israel first struck Iran, triggering a ripple effect across global energy markets.

Energy prices have risen sharply in the US in recent months, increasing 7.7 percent over the last two months alone, and are up 40 percent from a year ago, according to last week’s inflation report from the Labor Department’s Bureau of Labor Statistics,

However, prices are beginning to fall, a dip that began as Washington and Tehran entered negotiations.

“The potential deal that the US and Iran agreed to over the weekend certainly could pave the way for even lower prices… in the next two to three days by what we saw over the weekend,” Patrick De Haan, head of petroleum analysis at GasBuddy, which tracks petrol prices, told Al Jazeera.

But De Haan expects a plateau and says that consumers may not see gas prices at pre-war levels until 2027, even if the ceasefire holds.

“It may take many months, if not beyond a year, for global oil inventories to recover to pre-war levels,” De Haan said.

Amid strains on the supply chain, producers will also need time to ramp up output, while port bottlenecks and heightened demand during the busy summer travel season could delay any substantial relief for everyday consumers.

“There are some mitigating factors that are going to slow the decline in prices. There are a lot of organisations and companies that have to re-up their stockpiles [like the US’s strategic petroleum reserve] and fulfil contracts that have been on hold for the last few months,” John Deal, managing director of capital markets at the Post Oak Group investment bank, said.

Supply chain strains

Fixing kinks in the supply chain takes time.

Oil production slumped amid the war. More than 14 million barrels per day, or 14 percent of the world’s demand, has been shut, according to the International Energy Agency.

Deal said it would take time to get oil production back online.

“My sense is that there’s going to be sustained high demand through the summertime, and we probably won’t get back to pre-war levels [on petrol prices] until after the summer, maybe September or October,” Deal said.

Mark Jones, a professor of political science at Rice University, said that producers might be reluctant to bring full operations back online until they can see the ceasefire hold.

The agreement opening the blockade is for a 60-day negotiation period between the two countries.

“Many [producers] may be reluctant to restart production until they are convinced that the peace will hold, because the last thing they want to do is carry out the costly effort to restart production only to see the conflict revived and then have to shut it down once again,” Jones told Al Jazeera.

Getting production back online is also dependent on the impact individual producers have faced throughout the war.

Refineries that were shut as a precaution could reach as much as 95 percent capacity within 40-60 days, Vitol Bahrain’s head of research, Bader Nooruddin, told the Reuters news agency. Those damaged in the fighting could take much longer.

But bottlenecks at ports could be the biggest hurdle, according to Deal.

“There’s a lag time with shipping capacity. Shipping capacity is perhaps the most significant constraint,” Deal said.

This is because there are more than 500 ships still awaiting passage, according to shipping data from Kpler.

With the ships headed all over the world, it will take them weeks to reach their destinations, dock, and unload at the ports.

That also means a wave of empty ships is waiting in limbo for spots at ports to load cargo and ramp back up to normal operations.

Major shipping giants are in a holding pattern.

Norway’s Wallenius Wilhelmsen and Denmark’s Maersk both told Reuters that they have not changed their Middle East operations in the wake of the announcement.

During the war, there was limited passage through the Strait of Hormuz, with an average of 10 ships a day passing through, compared with 135 that normally transit the waterway, according to an analysis by Bloomberg.

“Tankers take months to reach their final destination and then come back again. So the ability to replenish the stocks is going to take until, I think, the early fall, just from a shipping perspective, to get back to the status quo that was in place before the conflict started,” Jones said, referring to the preferred term for the months of September through November in North America.

At the same time, US strategic reserves are running low, at their lowest levels since 1983. Reserves have tumbled by 18 percent since the war began.

“Demand might keep prices high through the summer as strategic reserves get refilled,” Deal added.

Jet fuel demand will also put pressure on consumers amid the normally busy JuneAugust travel season in the US.

“The war has really affected airlines and their ability to schedule and anticipate how the summer months are going to go,” Deal added.

In April, United Airlines CEO Scott Kirby said that airfares for the carrier may have to jump as much as 20 percent on higher fuel prices.

Grocery woes

The increase in prices is also hitting food budgets.

The most recent consumer price index report showed US inflation ticked up by 4.2 percent compared with this time last year. While inflationary pressures were mostly driven by fuel prices, the impact has still been felt at the grocery store.

Almost half of the world’s urea, which is used in fertiliser, is produced in the Gulf region and passes through the Strait of Hormuz. For American farmers, that means access to fertilisers for the next crop season is more expensive.

Tomato prices, already driven up by Trump’s tariffs on Mexico, have surged 40 percent in the last year amid rising transportation costs.

Lettuce prices rose by more than 16 percent in May, and the price of ground beef increased by about 12 percent compared with this time last year.

Jones warned that food prices may not go down.

“Many retailers, wholesalers, and producers will keep them where they are or only reduce them if forced to from a sales perspective. Unlike petrol, which tends to ebb and flow with the price of oil, prices for many other goods that have been adversely affected by all of this are much less likely to return to where they were prior to the start of the conflict,” Jones said.

“For groceries, for manufacturing goods, for anything that has gone up during the conflict, the price that is there now often becomes the new baseline from which prices move in the future.”

This can be compared with the COVID-19 pandemic period. When the pandemic stalled supply chains, producers increased prices. A 2024 investigation by the Federal Trade Commission found that retail grocers kept prices elevated after supply chain constraints brought on by the pandemic had eased.

“Some in the grocery retail industry seem to have used rising costs as an opportunity to further raise prices to increase their profits,” the report said.

Governments across the world have welcomed the tentative deal between the US and Iran to end the war, calling it a major diplomatic breakthrough. But Israeli politicians have been quick to criticise it, claiming it would undermine Israel’s security.

Israeli journalist Gideon Levy says the US-Iran announcement represents a personal defeat for Prime Minister Benjamin Netanyahu and his ambitions against Iran and Lebanon. His relationship with US President Donald Trump could also be at risk if Israel jeopardises the deal.

The US and Iran say they have reached a deal to end fighting on all fronts and open the Strait of Hormuz. Al Jazeera’s Osama Bin Javaid explains how both sides are claiming victory, even as tough negotiations over the details still lie ahead.

The US-Iran ceasefire announcement has raised hopes in Lebanon, after Pakistani mediators claimed it included an end to Israel’s war on the country. But as Al Jazeera’s Heidi Pett explains, we’ve been here before.

Dan Perry: The US ‘may pretend’ that Israel can’t attack Hezbollah ‘in order to get this deal done’. Israeli affairs analyst Dan Perry explains how the US, Israel and Iran may react as they get closer to a potential agreement.

Al Jazeera’s Heidi Pett reports from the site of an Israeli attack on a residential building in southern Beirut, which Israel calls a Hezbollah command centre. The strike came hours before President Trump said a US-Iran deal was meant to be signed.

United States President Donald Trump has said an initial agreement to end the US-Israeli war with Iran is “scheduled to get signed tomorrow”.

But that announcement, made on Trump’s Truth Social account on Saturday, contradicts an earlier statement by Iranian Ministry of Foreign Affairs spokesman Esmaeil Baghaei.

In remarks carried by Iran’s IRNA news agency, Baghaei said a memorandum of understanding would not be signed on Sunday and that negotiators are not planning to travel immediately to Geneva, Switzerland, in preparation for such an event.

According to Baghaei, a signing could happen “in the coming days”.

Hours later, Trump wrote, “The Deal is scheduled to get signed tomorrow, and immediately after it is signed, the Hormuz Strait is OPEN TO ALL.” Sunday marks Trump’s 80th birthday.

In recent days, Iran and the US have repeatedly contradicted each other when describing the details of the anticipated agreement, even as both sides have broadly signalled that a deal was closer than ever before.

Still, no terms have been officially released, with US and Iranian officials on Friday stressing that the agreement had not been finalised.

Beyond opening the Strait of Hormuz, Trump said in Saturday’s post that the agreement would be a “A WALL TO NO NUCLEAR WEAPON!” and that “no money would exchange hands”.

Trump also maintained that “at the appropriate time, when all is calm, we will go in and get the Nuclear Dust”, referring to Iran’s stockpile of enriched uranium.

But speaking on Iran’s Press TV on Friday, Iranian ⁠⁠Foreign ⁠⁠Minister Abbas Araghchi said the initial memorandum of understanding would only be a launch point for negotiations about the future of Iran’s nuclear programme.

He added that the signing would result in an immediate pause in fighting, but that Iran and Oman would continue to administer the Strait of Hormuz.

The issue of lifting foreign sanctions against Iran and unfreezing the country’s assets would be discussed following the signing of the memorandum of understanding, Araghchi said.

From threats to diplomacy

The latest flurry of diplomacy came after the US and Iran traded strikes for two days this week, threatening to end a pause in fighting that has persisted since April 8.

The US and Israel launched the war on Iran on February 28, amid ongoing indirect talks on the future of Iran’s nuclear programme.

The US and Israel had also launched a 12-day war on Iran in 2025, during another round of nuclear talks.

Iranian officials have said that deep distrust towards the US has slowed the progress towards creating a lasting agreement to bring the current war to an end.

Trump, meanwhile, has repeatedly pledged to reach a deal that would surpass the 2015 Joint Comprehensive Plan of Action (JCPOA), struck under his Democratic rival, former President Barack Obama.

That agreement, from which Trump unilaterally withdrew in 2018, saw Tehran agree to limit its nuclear programme and allow for international inspections in exchange for sanctions relief.

For years, Iran has maintained that it is building a nuclear programme for civilian use only and is not seeking a nuclear weapon.

In his post on Truth Social, Trump again pledged that any deal reached would be more stringent than the JCPOA.

“Our relationship with Iran is a much different and better one than previous Administrations have had,” he said.

“Hopefully, this process will all work out quickly, easily, and smoothly,” he added.

“If it doesn’t, we have the ultimate alternative, hopefully never to be used again!” he wrote, without elaborating on what his threat meant.

Israel has continued to attack Lebanon, despite Iran saying it was included in a potential memorandum of understanding with the US. Fresh forced displacement orders were issued on Saturday morning, following Israeli bombardment throughout Friday night on towns and villages in the south.