The United States and Iran appear to be closing in on a deal to end the approximately three-month-old war, with US President Donald Trump describing the negotiations as "largely negotiated" over the weekend. Regional officials indicate the framework would involve the gradual reopening of the Strait of Hormuz — the narrow waterway between Iran and the Arabian Peninsula through which roughly one-fifth of globally traded oil flows — and the ending of the US naval blockade of Iran. Secretary of State Marco Rubio, speaking after a joint press conference with India's External Affairs Minister in New Delhi, characterised the US position as seeking either "a good agreement" or dealing with Iran "another way," signalling that American negotiators retain leverage but are actively seeking a diplomatic conclusion. Talks are continuing, with the precise terms — including Iran's nuclear programme, sanctions relief, and sequencing of the Hormuz reopening — still to be finalised. For international commercial lawyers, the significance extends well beyond energy markets. A formal peace agreement would require the unwinding of extensive sanctions regimes, the renegotiation of shipping and insurance contracts constructed around the conflict, and the re-engagement of international financial institutions with Iranian counterparties. English law-governed trade finance, commodity, and shipping contracts that embedded war-risk clauses or invoked sanctions carve-outs during the conflict will require systematic review as normalisation proceeds.
Why this matters
A US-Iran peace deal — even a partial one — would be one of the most consequential events for international commercial law practice in years. Sanctions lawyers at City firms would face immediate demand to advise clients on the scope and sequencing of relief, as US secondary sanctions on Iran have extraterritorial reach affecting European companies. Shipping, trade finance, and commodity teams would need to work through the unwind of war-risk and sanctions carve-out provisions in English law contracts. The nuclear dimension adds a further layer: any deal touching Iran's enrichment programme is likely to involve IAEA (International Atomic Energy Agency) verification milestones that create conditions precedent in any sanctions relief framework, generating sustained advisory work over months or years.
On the Ground
On an international sanctions and trade law matter, a trainee would draft sanctions screening memos to assess whether specific counterparties or transactions fall within revised licence conditions, prepare choice-of-law summaries for contracts that may be affected by the changed sanctions environment, and help coordinate local counsel instruction letters across affected jurisdictions including the UAE, UK, and EU.
Interview prep
Question you might get
“If a UK-based commodity trading firm had suspended performance under an English law supply contract citing sanctions and force majeure during the Iran conflict, what legal steps would it need to take once a peace deal is formalised?”
Sign up free to see the full answer
A model answer you can lift into an interview — how to frame this story for a partner.
Sign up freeMy notes
saved