A new agreement between the United States and Iran could end months of fighting and economic problems. Both countries announced on Monday that they have reached a basic plan for peace after long talks. Many people around the world have followed the situation closely because it affected global trade and security.

The main parts of the agreement include a permanent ceasefire and reopening the Strait of Hormuz, which is important for oil transport. The US will stop its naval blockade. These steps should help trade return to normal in this key area.

The deal also involves releasing frozen Iranian money kept overseas. Iran has promised to stop all attacks and follow the ceasefire rules. There will be a signing ceremony in Switzerland later this week, with other countries watching the process.