US-Iran war deal takes effect as tanker traffic resumes in Hormuz
Why it matters: The pact gives negotiators 60 days to settle Iran's nuclear program as oil prices fall and Lebanon fighting continues.
An interim US-Iran deal to end their war took effect on June 18, allowing oil tankers to keep moving through the Strait of Hormuz and prompting a drop in oil prices to their lowest level since March 2. The agreement gives both sides 60 days to negotiate over Iran’s nuclear program and set up a $300 billion reconstruction fund and other financial incentives. Washington said it had lifted its blockade on Iran, while Tehran signaled it would keep directing traffic in the strait during the period without charging fees. But the accord faces early strain as Israel continued airstrikes in Lebanon, where more than 1 million people have been displaced, and Republicans in Congress questioned what President Donald Trump gave up to secure the deal.