U.S. and Iran Announce Peace Deal as Hormuz Reopening Nears
U.S. President Donald Trump said on Sunday that Washington and Tehran had reached a peace agreement aimed at immediately ending hostilities.
The proposed deal also includes plans to remove the U.S. naval blockade and reopen the Strait of Hormuz, one of the world’s most important oil shipping routes.
Iran’s Deputy Foreign Minister Kazem Gharibabadi separately confirmed on state television that an agreement had been reached. He said both sides were expected to formally sign it on Friday.
Trump Authorizes Removal of U.S. Naval Blockade
Trump announced the development in a post on Truth Social.
He said he had authorized the toll-free reopening of the Strait of Hormuz. He also approved the immediate removal of the U.S. naval blockade around Iran.
Trump later said the strategic waterway would be open to international shipping once the agreement was signed.
The reopening could restore the flow of oil and fuel through the channel after months of severe disruption.
Formal Signing Scheduled in Switzerland
Pakistani Prime Minister Shehbaz Sharif also announced the agreement on X following what he described as intensive negotiations.
Sharif said the United States and Iran had agreed to immediately and permanently end military operations across all fronts, including Lebanon.
The official signing ceremony is reportedly scheduled to take place in Switzerland on June 19.
However, Iranian officials have presented the agreement as an initial step toward a wider settlement rather than a complete resolution of every dispute.
Deal Could Lift Sanctions on Iranian Oil
According to Iran’s Mehr news agency, the agreement takes the form of a 14-part memorandum of understanding.
The reported terms include removing U.S. sanctions on Iranian oil exports and releasing approximately $12 billion in Iranian funds held abroad.
The framework is also expected to cover reconstruction efforts following months of conflict.
If implemented, the sanctions relief could allow more Iranian oil to return to international markets.
Strait of Hormuz Could Reopen Within 30 Days
The agreement reportedly calls for the Strait of Hormuz to reopen within 30 days.
The channel plays a central role in global energy markets because a large share of the world’s oil and fuel supplies passes through it.
Shipping activity had become increasingly dangerous during the conflict. Iranian forces reportedly targeted several vessels attempting to cross the waterway, although some tankers passed through with U.S. supervision.
The prospect of reopening Hormuz could reduce supply risks, insurance costs and pressure on global oil prices.
Iran Says It Will Retain Authority Over Hormuz
Despite Trump’s statement that the strait would be open to all vessels, important disagreements remain over how the channel will operate.
Mehdi Mohammadi, an adviser to the head of Iran’s negotiating team, said the agreement recognizes Tehran’s authority over the Strait of Hormuz, according to a report from Fars.
He added that Iran would continue charging fees for safe passage through the waterway.
These contrasting interpretations may become a major issue as both sides work to implement the agreement.
Nuclear Talks to Continue for 60 Days
The agreement reportedly establishes a 60-day period for negotiations over Iran’s nuclear program.
Under the proposed framework, Tehran would commit to neither producing nor obtaining nuclear weapons. Iran would also maintain the current state of its nuclear activities until a broader agreement is completed.
Foreign Minister Abbas Araghchi previously said the nuclear dispute would be addressed during a second phase of negotiations.
Iran has repeatedly insisted that its nuclear program serves peaceful purposes. Washington, however, has demanded stronger guarantees that Tehran will not develop a nuclear weapon.
Uranium Enrichment Remains a Major Dispute
Stopping Iran’s uranium enrichment activities has been one of Washington’s main demands.
Trump has repeatedly said that Iran must not be allowed to acquire a nuclear weapon. He also claimed that the United States would eventually secure and destroy Iran’s nuclear material.
However, Tehran has not publicly abandoned its position that it has the right to maintain a peaceful nuclear program.
The New York Times reported that the United States could resume military action if the two countries fail to reach a final nuclear agreement.
Israeli Strikes Complicate Peace Efforts
The announcement followed renewed Israeli strikes on Beirut earlier on Sunday.
The attacks raised doubts about whether the broader regional ceasefire could hold. Iran had demanded that Lebanon be included in any peace settlement.
Trump criticized the strike and said it should not have occurred while negotiators were close to completing an agreement with Iran.
He acknowledged Israel’s right to defend itself but described recent Hezbollah drone activity as limited and insignificant.
Conflict Disrupted Global Oil Markets
The peace announcement comes as the war approaches its fourth month.
The conflict caused major disruption to oil production and shipping throughout the Middle East. Rising energy prices also contributed to higher inflation across the global economy.
Markets are now focused on whether Washington and Tehran can turn the initial framework into a lasting peace agreement.
The outcome will depend heavily on negotiations over Iran’s nuclear program, sanctions relief and control of the Strait of Hormuz.
