The United States and Iran have reached a major peace agreement aimed at ending nearly four months of conflict across the Middle East. The breakthrough deal was announced after intensive negotiations and is expected to be formally signed on June 19 in Switzerland.
The agreement was first revealed by Pakistan Prime Minister Shehbaz Sharif, whose government played a key role in mediating discussions between both countries. The deal calls for an immediate and permanent halt to military operations across all active fronts, including areas connected to the wider conflict such as Lebanon.
“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.
“The official signing ceremony will be on Friday, 19 June in Switzerland,” Sharif said.
Shortly after the announcement, U.S. President Donald Trump confirmed that an agreement had been finalized.
“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 emphasized the importance of reopening the key shipping route.
“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!”
Iran's Supreme National Security Council also confirmed that a memorandum of understanding had been completed. According to Iranian officials, all military operations would stop immediately, while negotiations toward a broader long-term agreement would continue after both sides begin implementing their commitments.
Iranian state media described the agreement as a significant diplomatic victory and reported that military activity would cease across all fronts. At the same time, Iranian officials continued to criticize the United States and Israel for their roles in the conflict and the instability that followed.
A major component of the agreement involves reopening the Strait of Hormuz, one of the world's most important energy shipping routes. Since fighting began earlier this year, disruptions in the strait have affected global supplies of oil, gas, and other critical commodities, leading to higher prices and concerns about inflation in many countries.
The closure of the waterway placed pressure on global markets and raised fears of prolonged economic instability. Energy prices surged during the conflict, contributing to rising inflation and increasing concerns among central banks and governments worldwide.
The agreement has already been welcomed by several countries in the region. Qatar praised the deal and highlighted its importance for restoring freedom of navigation through the Strait of Hormuz.
According to Qatar's Foreign Ministry, the agreement is “an important step towards consolidating sustainable peace and promoting economic growth regionally and internationally.”
European leaders also signaled support for the diplomatic breakthrough. Reports indicate that the United Kingdom, Germany, France, and Italy are willing to discuss easing sanctions on Iran if progress continues regarding Tehran's nuclear program.
“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.
The path to peace was not without challenges. Earlier on Sunday, tensions briefly resurfaced after reports of projectiles being launched from Lebanon into Israel. Israeli retaliatory strikes followed, creating fears that the emerging agreement could collapse before being finalized.
President Trump publicly urged all sides to avoid further escalation and preserve the fragile diplomatic progress.
The peace deal follows months of uncertainty, shifting negotiations, and repeated claims that an agreement was close. Earlier drafts reportedly included commitments from the United States to ease oil-related sanctions and from Iran to fully restore shipping access through the Strait of Hormuz within 30 days.
Economic experts are closely watching the agreement because of its potential impact on global markets. A return to normal shipping operations could help stabilize energy prices, reduce inflationary pressure, and improve economic conditions in countries heavily affected by the conflict.
U.S. Vice President JD Vance welcomed the breakthrough and emphasized the potential economic benefits.
“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.”
If successfully implemented, the agreement could mark one of the most significant diplomatic developments in the region in recent years, bringing an end to months of conflict while reopening a vital trade route that affects economies around the world.
