The US and Iran have reached an agreement to potentially end the months-long war in the Middle East, but some key questions still remain. CNN's Nic Robertson reports. 2:10 • Source: CNN (https://www.cnn.com/)
Here's what's next after US-Iran agreement 2:10
Vice President JD Vance told CNN’s Jake Tapper on Monday that the memorandum of understanding between the United States and Iran is “about a page and a half” long, describing it as a broad framework that leaves details to be worked out during future technical negotiations.
“Yes, so the MOU is about a page and a half, so it is a very general document,” the vice president said.
“On a number of issues, we are going to have to figure this stuff out during the technical negotiation phase, but what the MOU does is set up a framework whereby the Iranians get the benefits of the bargain by meeting their obligations under the bargain,” he added.
Vance said that “paragraph one” of the document lays out the expectation that Iran commits to “regional peace and stability,” which he said includes not funding groups the US considers terrorists.
“What paragraph one of the agreement says is effectively that Iran commits itself, just as the United States commits itself, to regional peace and stability,” Vance said.
“Part of that, Jake, is that the Iranians have to stop funding violent terrorist organizations, they have to stop funding regional instability.”
Oil prices settled at their lowest level since early March and the Dow clinched a record high Monday after the United States and Iran announced an agreement to reopen the Strait of Hormuz.
Brent crude, the global oil benchmark, sank 4.76% to $83.17 per barrel, its lowest settle price since March 4. WTI, the US oil benchmark, fell 4.87% to $80.75 per barrel, also its lowest settle price since March 4.
The US-Iran agreement and drop in oil prices were met with relief in the stock market. The Dow gained 469 points, or 0.92%, and closed at a record high of 51,671, surpassing a previous peak set on June 4.
The S&P 500 rose 1.65%, and the tech-heavy Nasdaq Composite surged 3.07% for its best day since March 31. The S&P and Nasdaq are now less than 1% and about 1.5% away from hitting record highs, respectively.
Still, uncertainty lingers about specifics of the US-Iran agreement, logistics surrounding reopening the Strait of Hormuz and whether conflict in the Middle East will be contained.
Oil prices remain above pre-war levels. The 10-year US Treasury yield, which can move based on expectations for inflation, is also above pre-war levels.
Dozens of supporters of Iran-backed militias gathered in Baghdad on Monday to celebrate the agreement between the United States and Iran, calling it a victory for Tehran.
Video obtained by CNN showed supporters assembling in cars at Tahrir Square in central Baghdad before heading to the area in front of the Iranian Embassy.
The gathering appeared to be an organized public show of support for Iran following developments in talks between Washington and Tehran.
The supporters were seen holding Iranian flags and the flags of some Iran-backed militias. They also displayed posters on buildings showing the late Iranian supreme leader, Ayatollah Ali Khamenei, and his son Mojtaba, who succeeded him.
“Death to America,” one supporter was heard shouting. “We are at your service,” others were heard shouting in reference to the Iranian regime.
President Donald Trump said Monday that the Strait of Hormuz is “already partially opened” and that it will fully open Friday, when the US and Iran are set to formally sign a memorandum of understanding.
Though the US president publicly complained about European leaders’ unwillingness to join in the US-Israeli war against Iran, he suggested the strait would reopen without needing much aid from France.
“I don’t think we’re going to need much help, because we have an agreement where it’s going to be open, and it’s toll-free. We had a little argument on that; it’s toll-free,” he said, adding, “I don’t think it’s a bad idea to have a ship or two up here from a few countries.”
A senior US official said that ceasefires can be “a little dirty,” referencing the fire traded between Israel and Hezbollah and implying that it would not greatly impact the impending agreement between the United States and Iran.
“Ceasefires like this are inherently a little dirty. We’ve seen that in Lebanon, where you know there’s a significant reduction in the amount of fire coming from Hezbollah to Israel, and consequently coming from Israel into Lebanon, but it’s not zero,” one senior offiical said.
A senior administration official also told reporters on a Friday call: “Sometimes these ceasefires are a little messy, sometimes they take a little bit of time to take root.”
On the Monday call, the continued challenge of communicating any movement between both sides was also acknowledged as a factor at play.
“We saw even yesterday, there are going to be delays in getting some of the word about the deal through their system,” they said.
