Pakistan Proposes 'Islamabad Accord' to Reopen Strait of Hormuz

Key Facts

1Pakistan has delivered a proposal for an immediate ceasefire, known as the 'Islamabad Accord', to both the United States and Iran.

2The accord aims to immediately reopen the Strait of Hormuz, the world’s most vital oil and LNG chokepoint.

3Sources report that the ceasefire could take effect as early as today to allow for continued negotiations.

Pakistan has officially delivered a ceasefire proposal known as the 'Islamabad Accord' to the United States and Iran to resolve the ongoing military escalation. The primary objective of the accord is the immediate reopening of the Strait of Hormuz, the world’s most critical chokepoint for oil and LNG shipments. According to sources cited by Reuters, the ceasefire could take effect as early as today, allowing both nations to engage in further diplomatic negotiations. This mediation effort follows a 24-day blockade of the strait that triggered a significant surge in global energy prices. The potential resolution is expected to sharply reduce the geopolitical risk premium, exerting downward pressure on Brent Crude, WTI, and gold prices. Conversely, the news is likely to provide a boost to global equities and the SPY index as concerns over energy supply disruptions ease.