Global markets are celebrating a preliminary agreement between the United States and Iran aimed at ending a conflict that lasted nearly four months and contributed to a slowdown in global economic activity. Global equities rallied on Monday, while oil prices and bond yields moved lower.

Although a final agreement has not yet been signed, both sides have agreed to a memorandum of understanding and halted military operations. The reopening of the Strait of Hormuz is also expected as part of the deal, according to US President Donald Trump.

Here is what is currently known about the agreement and what could happen next.

Has Iran signed a peace agreement?

Iranian Deputy Foreign Minister Kazem Gharibabadi said the text of the agreement has been finalized and is scheduled to be signed on Friday in Geneva.

We have announced a permanent and immediate end to the war on all fronts, he said. Trump also stated that the US naval blockade imposed on Iran would be lifted.

As of Monday, however, the memorandum of understanding had not been officially published, and most available details are based on statements from officials involved in the negotiations.

Will the Strait of Hormuz reopen?

The Strait of Hormuz has not officially reopened yet, but both Trump and Gharibabadi have stated that it will reopen on Friday following the signing ceremony in Geneva.

Trump focused heavily on the strait in a post on Truth Social, saying it would reopen without transit fees.

I hereby fully authorize the reopening of the Strait of Hormuz free of charge, while simultaneously ordering the immediate removal of the US naval blockade. Ships of the world, start your engines. Let the oil flow, he wrote.

He later reiterated that the strait would reopen upon signing the agreement on Friday to allow for mine-clearing operations.

Irans semi-official Mehr News Agency reported that the reopening would take place under Iranian arrangements.

Meanwhile, Qatar welcomed the agreement on Monday, specifically highlighting efforts to address outstanding issues between Washington and Tehran, including freedom of navigation through the Strait of Hormuz.

A fragile ceasefire and difficult negotiations ahead

The United States and Iran have temporarily suspended direct hostilities. The agreement includes a 60-day ceasefire period intended to create a framework for future negotiations covering Irans nuclear program, sanctions, and regional security issues.

Those talks could eventually lead to a comprehensive peace settlement. However, Gharibabadi said the 60-day nuclear negotiations cannot begin unless Washington releases billions of dollars in frozen Iranian assets, a condition the United States has rejected.

Trump reiterated on Sunday that Iran will never have a nuclear weapon. He also told The New York Times that the United States could launch new military action if negotiations fail to resolve concerns surrounding Irans nuclear ambitions.

Torbjorn Soltvedt, Senior Middle East Analyst at Verisk Maplecroft, told CNBC:

The risk of renewed conflict will remain present in the coming months. Delaying the most difficult issues until later negotiations extends uncertainty and leaves the root causes of the confrontation unresolved.

One of the most important outstanding issues is that Israel is not a party to the agreement despite having participated in the conflict since the first strikes on February 28. Israeli operations inside Lebanon have also periodically tested previous ceasefire arrangements.

While Gharibabadi previously stated that the permanent and immediate end to the war includes Lebanon, it remains unclear whether Israel accepts those terms.

Israeli Defense Minister Israel Katz said on Monday that Israeli forces would remain in what he described as security zones in Lebanon, as well as in Gaza and Syria. He added that Israel would respond if Iran took action against it in connection with developments in Lebanon.

Who may attend the Geneva signing ceremony?

Tehran has not yet announced an official list of attendees, a detail that could provide important clues about the level of support the agreement enjoys within Irans political establishment.

Iranian Foreign Minister Abbas Araghchi, who played a central role in the Pakistan-mediated negotiations, is considered the leading candidate to sign the agreement on behalf of Iran.

If Parliament Speaker Mohammad Bagher Ghalibaf attends, it could be interpreted as a sign of support from conservative factions and Irans security establishment. Participation by senior security official Mohammad Bagher Zolghadr would likely be viewed as an indication of approval from Irans Supreme Leader, despite Zolghadr being under sanctions.

No official US delegation has yet been confirmed.

Reports have suggested that US Vice President JD Vance could attend the ceremony if the agreement proceeds. During an interview on CNBCs Squawk Box, Vance said the administration expects a full spectrum of representatives to participate in Fridays talks. He added that he expects the Iranian delegation to include Ghalibaf, Araghchi, senior security officials, and representatives from various political factions.

Trump could also travel directly to Geneva from the G7 Summit in vian-les-Bains, France. US envoy Steve Witkoff, who led much of Washingtons negotiating effort with Iran, is also expected to be involved.

The conflict extended beyond the United States and Iran, drawing in several regional powers.

One of the key signals markets will be watching is whether Saudi Arabia and United Arab Emirates send official representatives to the signing ceremony. Their participation would be viewed as a sign of broader regional backing for the agreement.