The United States and Iran say they have reached a framework agreement to end their conflict, lift the US blockade on Iran and reopen the Strait of Hormuz, a vital global shipping route. The preliminary pact, brokered with the help of Pakistan, has already sent oil prices lower and raised hopes of a broader de-escalation in the Middle East.

But while both sides are hailing the breakthrough, major questions remain unresolved, most notably the future of Iran's nuclear programme. With a memorandum of understanding expected to be formally signed in Switzerland on Jun 19, is this the beginning of a lasting peace between Washington and Tehran? And what could the agreement mean for global energy markets, regional stability and the balance of power in the Middle East?

On The Big Story, Hongbin Jeong speaks with Dr Jessica Genauer, Academic Director of the Public Policy Institute & Associate Professor, International Relations, University of New South Wales, to find out more.