U.S. and Iran agree to 60-day Strait of Hormuz reopening

The arrangement also includes a ceasefire during the period while talks on larger issues proceed. Officials described the step as a limited reopening rather than a comprehensive settlement.

Background to the agreement The Strait of Hormuz had been closed earlier in the year after military strikes began on February 28. Shipping had been halted, cutting off a major route for oil and other commodities. Brent crude prices rose from about $70 a barrel before the closure to a peak of $120 during the disruption.

The World Bank reported that growth slowed in two-thirds of countries worldwide, and inflation increased in multiple economies.

Economic and political effects By the end of May, an estimated 14 million workers had lost jobs linked to the shipping halt, according to modeling by the UN's International Labour Organisation. Workers still employed saw an average 1 percent reduction in purchasing power, totaling $1.1 trillion globally.

U.S. gasoline prices increased from roughly $3 per gallon before the closure to $4.15 last week. Annual inflation reached 4.2 percent, the highest level in three years. A poll conducted last month for the Chicago Council on Foreign Affairs found that nearly nine in ten Americans viewed the conflict as harmful to living costs.

Congressional midterm elections are scheduled for November. Brent crude fell to around $80 a barrel after the Monday announcement. Officials said the flows of fertilizer, LNG, helium, and plastics are expected to resume if the ceasefire holds. Iran holds 440 kilograms of highly enriched uranium stored underground.

Iranian officials have indicated they may seek the release of frozen assets before making concessions on the material. Israeli officials have stated that any agreement must also restrict attacks by Iranian-backed groups. Israeli elections are also scheduled this year.