Trump Says Iran Deal Reopens Strait of Hormuz Toll-Free, Lifts US Naval Blockade

US President Donald Trump said the Strait of Hormuz would re-open and be "toll-free" as part of a deal to end the war with Iran, with Tehran agreeing that it will “never have a nuclear weapon.”

The agreement is set to be signed at Switzerland’s mountainside Burgenstock resort on Friday, with the Swiss foreign ministry confirming the location near Lucerne in central Switzerland to AFP.

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The Wall Street Journal reported, citing sources familiar with the matter, that the US will allow Iran to immediately start selling oil and fuel again as part of the deal, while an unnamed US official told Reuters that Iran can only sell oil if it keeps to the terms including free navigation in the strait of Hormuz and not obtaining an nuclear weapon.

Iran’s deputy foreign minister Majid Takht-Ravanchi said the two-month US naval blockade on Iranian ports had been lifted ahead of the planned formal signing, telling the government’s website that "the blockade has been lifted prior to the formal signing" scheduled for Friday.

The BBC said the full details of the agreement have not been made public yet, but it reported that Brent crude had fallen to $78 (£58) a barrel this evening as Trump spoke at the G7 summit in France.

Trump told the G7 that the strait of Hormuz will be open by Friday and that the full text of the peace deal will be released in a “formal setting,” while the BBC reported he said he would likely hold a news conference to publicly read the agreement "word by word".

In a separate thread of reactions, Hezbollah told Reuters it believes Iran will not sign a nuclear deal with Washington unless Israel pulls its troops from southern Lebanon, and the Reuters account said Hezbollah’s media office framed that withdrawal as the result of, and not a precondition for, the next set of talks between Iran and the US.

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The Guardian reported that Ebrahim Azizi, the head of the Iranian parliament’s national security commission, posted on X that the US must uphold every clause of the memorandum of understanding (MOU) between Iran and US, particularly when it comes to ending the war in Lebanon, writing "Any breach will be met with a decisive, crushing response."

Israel Defense Forces strikes in southern Lebanon were described by the BBC as including claims it intercepted rockets and destroyed a rocket launcher Hezbollah militants fired at its troops, while the Guardian said Israeli drone strikes targeted three vehicles in southern Lebanon on Tuesday, killing at least four people.

The BBC also reported that Trump continued his public criticism of Israeli Prime Minister Benjamin Netanyahu, and it said Trump described the Lebanon conflict as a "minor war" while insisting it would not derail the US's deal with Iran.

The AP said the initial agreement signed electronically Sunday was meant to provide a meaningful truce in a monthslong war, but it emphasized lingering questions over the fate of Tehran’s nuclear program and an offensive by Israel in Lebanon that could prolong fighting and scuttle the deal.

AP reported that at the core of the pact is a planned reopening of the Strait of Hormuz, and it said the Strait of Hormuz won’t open until the deal is signed, with the US military saying the blockade will remain in place “pending execution” of the deal and advising merchant ships: "Do not attempt to cross until explicit direction is given."

CNN reported that a senior US official said President Donald Trump and Vice President JD Vance both virtually signed the agreement to end a US blockade of Iranian ports, reopen the Strait of Hormuz, and start 60 days of nuclear negotiations, with Parliament Speaker Mohammad Bagher Ghalibaf signing for the Iranian side.

CNN also reported that Vice President JD Vance said Monday that Iran will not receive any US taxpayer money under the terms of an agreement aimed at ending the war, telling Fox News’ Sean Hannity: "They never get a dime of American taxpayer money, ever, full stop."

Looking ahead to implementation, CNBC said Kpler analysts expected ship traffic through the Strait of Hormuz could rise to nearly 50% of prewar levels within a month if the deal is implemented without major setbacks, while Bimco warned Monday that "the threat of mines in the area remains a concern" and cautioned ships that the security situation is still high risk.