The United States and Iran have reached an agreement to end their nearly four-month war, with both countries agreeing to an immediate and permanent halt to military operations on all fronts, including in Lebanon, Pakistan Prime Minister Shehbaz Sharif said on Sunday.
Pakistan, which has acted as a mediator between Washington and Tehran, announced the breakthrough following a series of intensive diplomatic talks.
“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 said in a post on X.
“The official signing ceremony will be on Friday, 19 June in Switzerland,” Sharif said.
Shortly after Sharif’s announcement, US President Donald Trump confirmed that an agreement had been reached.
In a post on Truth Social, Trump wrote: “The deal with the Islamic Republic of Iran is now complete.”
“I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade,” Trump wrote.
Trump later said the Strait of Hormuz would reopen on Friday, once the deal is formally signed.
“With the opening of the Strait upon the signing of the Deal on Friday, for purposes of mine removal, oil will flow on both ends again for the Region, and the World!” he said.
Iran’s Supreme National Security Council also confirmed on Sunday that Tehran had finalized a memorandum of understanding with Washington.
According to the council, all military operations on all fronts, including Lebanon, would stop “immediately and permanently.”
The statement, issued in Persian and translated by MS NOW, also said the naval blockade against Iran would be lifted immediately.
However, Tehran noted that further negotiations toward a final agreement would only move forward once Washington had fulfilled its commitments under the memorandum of understanding.
Iranian state media also carried a television banner saying the US had been “forced to sign an agreement to end the war,” according to the Associated Press.
Iranian state television also reported that the country’s Foreign Ministry holds the US and Israel “responsible for the dangerous consequences of the continued insecurity and tension in the region.”
Qatar’s Ministry of Foreign Affairs welcomed the agreement, saying it includes measures to protect freedom of navigation through the Strait of Hormuz.
Qatar “considers it an important step towards consolidating sustainable peace and promoting economic growth regionally and internationally,” he said.
Several European nations, including the UK, Germany, France and Italy, said on Sunday that they were prepared to lift sanctions on Iran if Tehran takes steps regarding its nuclear program, Reuters reported.
“Iran must never acquire a nuclear weapon. We stand ready to work with the US, Iran and the IAEA to this end,” the nation’s leaders reportedly said in a joint statement.
On Friday, Iranian state media reported that a 14-page draft memorandum had already been prepared.
The draft reportedly outlined several terms for a possible peace agreement, including the US lifting oil sanctions and Iran agreeing to reopen the Strait of Hormuz within 30 days.
The agreement comes after weeks of mixed signals from both Washington and Tehran over the direction of the conflict.
A fragile ceasefire had been in place while diplomatic efforts continued behind the scenes to bring the war to an end.
However, the deal appeared to face a fresh test earlier on Sunday after the Israel Defense Forces said Iran-backed Hezbollah in Lebanon had fired projectiles into Israel.
Israel later carried out strikes in Beirut, drawing criticism from Trump, who warned Iran and Hezbollah against launching further attacks.
Trump urged both sides not to “blow it.”
The Strait of Hormuz, one of the world’s most important shipping routes, has effectively been closed since the conflict began in late February.
The blockade has caused serious pressure on the supply of several key goods, including oil, gas and fertilizers.
The disruption has pushed prices higher and raised concerns about a possible return to stagflation.
Inflation has already started to rise again in several major economies.
In the US, annual inflation reached 4.2% in May, marking its highest level in three years.
US Vice President JD Vance described the agreement as “a great thing for the American people” during an interview with Fox News shortly after the deal was announced.
“I know that they suffer from high gas prices, the President has certainly been very concerned about that fact,” Vance said. “What we’re going to be able to do is drive down the cost of energy, not just now but for the long term.”
On Thursday, the European Central Bank announced a quarter-point interest rate hike.
The move marked the ECB’s first rate increase since 2023, as the war in Iran continued to push euro zone inflation away from its target.
The decision made the ECB the first major global central bank to raise its key interest rate in response to the energy shock.
Market expectations have also shifted during the war, with hopes for broad interest rate cuts fading.
Instead, many economies are now expected to face a higher-for-longer interest rate environment.
The Federal Reserve is now expected to raise interest rates before the end of this year, according to the CME’s FedWatch tool.
