The United States and Iran agreed to a peace deal on Sunday, ending 107 days of war, opening a pathway to restore traffic through the Strait of Hormuz, and establishing a 60-day window for broader diplomatic negotiations.
“The Deal with the Islamic Republic of Iran is now complete,” President Trump wrote on Truth Social, simultaneously authorizing the removal of the U.S. naval blockade and declaring toll-free transit through the strait. “Ships of the World, start your engines. Let the oil flow!”
Pakistani Prime Minister Shehbaz Sharif, lead mediator alongside Qatar, announced the deal on X, writing that “both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon.” A formal signing is set for June 19 in Geneva, Switzerland.
Deputy Foreign Minister Kazem Gharibabadi said the memorandum of understanding (MOU) text was finalized after more than 14 hours of Qatari-mediated talks in Tehran.
Full shipping will not resume immediately. Trump wrote that the strait opens only “upon the signing of the Deal on Friday, for purposes of mine removal.”
A 15-nation coalition led by the UK and France, including the Royal Navy’s RFA Lyme Bay with autonomous mine disposal systems, is staged to clear Iranian Maham-series mines before tankers can move.
Brent crude fell roughly 4% to $83.82 per barrel, while West Texas Intermediate (WTI) dropped nearly 5% to $80.95 following the announcement.
The UK, France, Germany, and Italy said in a joint statement they were prepared to lift sanctions on Iran tied to nuclear compliance.
The deal faced an immediate test after Israel struck Hezbollah positions in Beirut hours before the announcement. The strike prompted a sharp public warning from President Trump, who urged leaders ‘not to blow it,’ though Iranian negotiators ultimately condemned the strike without abandoning the framework.
U.S. Vice President J.D. Vance said the agreement could usher in a new era in the Middle East, adding that Iran would “never have a nuclear weapon.”
