European Central Bank President Christine Lagarde welcomed the preliminary ceasefire agreement between the United States and Iran on Monday, citing the potential for the Strait of Hormuz to reopen. The deal, which triggered an immediate drop in oil prices, marks a significant shift in regional geopolitical tensions.

Speaking to France Culture radio, Lagarde characterized the development as positive, provided that the agreement holds through the upcoming signing of a memorandum of understanding. The reopening of the Strait of Hormuz remains the primary economic incentive for global markets, as the waterway serves as a critical artery for international petroleum transit.

Despite the breakthrough, Lagarde tempered expectations regarding the long-term diplomatic outlook. She emphasized that the core dispute over Tehran's uranium enrichment program remains unresolved, requiring further negotiation and a formal framework to conclude. The current pact functions as a preliminary measure, leaving the most contentious aspects of the nuclear standoff to future discussions between Washington and Tehran.