The US and Iran have agreed on a peace deal, bringing an end to months of fighting that has sparked devastation across the region and upended the global economy since the conflict began in late February, US and Pakistani officials announced on Sunday.
The agreement, brokered after weeks of halting negotiations in Pakistan and then Qatar, will see a permanent ceasefire implemented as well as the reopening of the Strait of Hormuz by the end of the week.
Both sides will now enter talks to iron out the details of the agreement and move forward on longer-term issues, including key questions such as uranium enrichment and sanctions.
“The Deal with the Islamic Republic of Iran is now complete,” Trump wrote on Truth Social on Sunday, which was his 80th birthday. “Congratulations to all!”
Moments earlier, Pakistani prime minister Shehbaz Sharif posted a similar message.
“Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED,” Sharif wrote on X.
He said that a signing ceremony would take place in Switzerland on 19 June.
The opening of the Strait of Hormuz
President Trump declared that the vital shipping route would be reopened following the provisional agreement, although both Pakistan and Iran have made no explicit mention of this.
“I hereby fully authorise the toll-free opening of the Strait of Hormuz, and, simultaneously herewith, authorise the immediate removal of the United States Naval blockade,” he announced. “Ships of the World, start your engines. Let the oil flow!”
But an hour later he appeared to caveat the statement, adding that the waterway would be opened “upon the signing of the Deal on Friday, for purposes of mine removal” after which “oil will flow on both ends again for the Region, and the World!”
Oil prices dropped by more than 4 percent following the announcement – hitting the lowest levels since March – but experts have warned it could take months for energy production in the region to reach normal levels.
Iranian state television reported that Iran “forced” the US to accept a peace deal, and that traffic through the Persian Gulf will now be regulated by Iran and Oman. Previous reports indicated that the countries could operate a tolling system for commercial ships.
But the US denied that Iran would receive any financial benefit from the agreement.
“I’m seeing a lot of fake information about a potential deal to reopen the Strait and end Iran’s nuclear weapons program,” vice president JD Vance wrote on X on Friday.
He wrote that Iran would not receive “any cash” and that the deal would be structured to ensure American concerns are “prioritised.”
The leaders of France, the UK, Germany and Italy cautiously welcomed the announcement in a statement on Monday and called for “unconditional and unrestricted freedom of navigation” for commercial vessels.
What has been agreed over Lebanon?
Sharif said that the ceasefire agreed between the parties would be applied to “all fronts”, including Lebanon.
Iran had been adamant that it would not agree to a deal that does not include a cessation of Israeli attacks in the south of the country and in its capital Beirut. More than 4,000 people have been killed in Israeli strikes since the war began, and more than 1.2 million people have been displaced.
“Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon,” the Pakistani prime minister wrote on X.
Iran’s deputy foreign minister, Kazem Gharibabadi, said of the agreement: “A permanent and immediate end to the war has been declared on all fronts, including Lebanon.”
But neither Trump nor Israel made any reference to Lebanon, and Israel continued to strike Lebanon on Sunday as the deal was reportedly agreed.
Hawkish national security minister Itamar Ben-Gvir said on social media that “we are not partners to this agreement that does not ensure our security, and it does not bind us in any way”.
Nuclear weapons and enrichment
An Iranian official told Reuters that the draft memorandum includes an agreement by Tehran not to produce or acquire nuclear weapons, allows it to maintain the current status of its nuclear programme and prevents it from further uranium enrichment and expansion of its nuclear facilities.
The United States has agreed to allow Iran to dilute its stockpile of highly enriched uranium on Iranian soil under a more detailed future agreement, according to the reports.
While official details remain scarce, the emerging peace agreement has been criticised by some members of Trump’s own party and by the Israeli government, with some claiming it does little to build on the terms of the 2015 Iran nuclear deal, which Trump withdrew from during his first term.
Nuclear talks are to continue over the next 60 days, senior Pakistani officials told the Associated Press.
Mr Vance has denied that Iran would receive any payment in exchange for giving up the development of nuclear weapons.
The UK, Italy, France and Germany reiterated that “Iran must never acquire a nuclear weapon” in a statement on Monday.
Republican senator Lindsey Graham said that “any nuclear deal with Iran will be sent to Congress for review and a vote.”
Economic sanctions
Throughout negotiations, the Islamic Republic has sought the removal of economic sanctions that have crippled the country’s growth for more than 45 years. Iran has also sought the release of billions in frozen Iranian funds, according to Axios.
Before the deal was announced, a senior Iranian official said that the United States had agreed to release $25bn of frozen Iranian assets under the draft terms of the agreement and to waive oil sanctions on Iran for a specified period.
According to the official, the US has agreed not to impose any further sanctions on Iran until a final deal is reached. Washington is to prepare a reconstruction and development plan during the ensuing talks, according to the draft memorandum.
In a joint statement, Britain, Germany, France and Italy said they would be prepared to lift sanctions on Iran in response to "clear, verifiable steps" to limit its nuclear program.
Regime change
In an interview with The Wall Street Journal, Trump said the deal would be signed in-person or electronically by Vice President Vance or himself.
Some critics have also accused the administration of not going far enough to dismantle Iran’s existing government. In his interview with the Journal, Trump said: “As far as regime change, I never cared about regime change.”
“With the agreement now in place, mediators will facilitate a series of meetings this week,” Sharif added. “These pre-implementation discussions will lay the foundation for the technical talks and the official signing ceremony.”
