US-Iran peace deal reached, Strait of Hormuz reopened; formal signing on June 19
The breakthrough is first made public by Pakistan Prime Minister Shehbaz Sharif, whose country played a key mediating role in the negotiations
The United States and Iran on Monday announced a landmark agreement to end months of hostilities, reopen the strategically vital Strait of Hormuz and lift the American naval blockade, marking a major diplomatic breakthrough with far-reaching implications for global energy markets and regional security.
The breakthrough was first made public by Pakistan Prime Minister Shehbaz Sharif, whose country played a key mediating role in the negotiations.
In a post on X, Sharif said intensive talks had culminated in a peace agreement between Washington and Tehran and that both sides had agreed to the “immediate and permanent termination of military operations on all fronts, including in Lebanon”.
Sharif said the official signing ceremony would take place in Switzerland on June 19 and announced that a series of pre-implementation discussions would be held this week ahead of technical-level talks.
He thanked the United States and Iran for their commitment to diplomacy and expressed appreciation to Qatar, Saudi Arabia and Türkiye for supporting the mediation effort.
Six minutes later, US President Donald Trump confirmed the agreement in a post on Truth Social, declaring that the deal with the Islamic Republic was “now complete”.
“The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!” Trump said.
“I hereby fully authorise the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!” he added.
Tehran subsequently confirmed that the text of a Memorandum of Understanding emerging from the so-called Islamabad negotiations had been finalised on the evening of June 14 following several months of difficult talks.
In a statement, Iran's Supreme National Security Council said military operations on all fronts, including Lebanon, would end “immediately and permanently” and that the naval blockade imposed on Iran would be lifted in full.
The Iranian body said negotiations on a broader settlement would commence only after the other side fulfilled its obligations under the memorandum and thanked Pakistan and Qatar for their efforts in facilitating the process.
The accord is expected to formally end a conflict that had pushed oil prices above $100 a barrel, disrupted nearly one-fifth of global oil supplies and fuelled fears of a wider war in West Asia.
News of the agreement triggered a rally in global stock markets and a sharp decline in crude prices. However, major questions remain unresolved, particularly regarding Iran's nuclear programme, sanctions relief and the precise modalities governing freedom of navigation through the Strait of Hormuz.
These issues are expected to be addressed during a 60-day period of follow-up negotiations.
The agreement represents one of the most significant diplomatic breakthroughs in the region in recent years and, if implemented successfully, could reshape the strategic landscape of West Asia after months of conflict and mounting international concern.
