U.S. and Iran pause hostilities as Hormuz shipping resumes

The United States and Iran have agreed to pause hostilities and allow commercial vessels to move through the Strait of Hormuz, after a weekend of strikes and retaliatory attacks raised fears of wider disruption in the region. According to a U.S. official, technical talks will continue on the terms of their memorandum of understanding, while both sides temporarily stand down. The agreement comes after U.S. strikes on Iranian military targets in response to attacks on shipping in the waterway. The escalation also spread beyond the strait, with Kuwait and Bahrain reporting missile and drone attacks. Gulf states including Saudi Arabia, the United Arab Emirates and Qatar condemned the strikes and warned about risks to sovereignty and navigation. Oil prices moved higher as markets reacted to renewed concern over supply flows from the Middle East.