The United States and Iran have reportedly reached a breakthrough agreement aimed at ending hostilities and restoring access to the Strait of Hormuz, according to statements from President Donald Trump and Iranian officials.
President Trump announced the development on Truth Social, declaring that an agreement with the Islamic Republic of Iran had been finalized. He stated that he had authorized the reopening of the Strait of Hormuz without tolls and approved the immediate removal of the U.S. naval blockade, paving the way for global shipping and oil exports to resume.
Multiple Leaders Confirm Agreement
Shortly before Trump’s announcement, Pakistani Prime Minister Shehbaz Sharif also confirmed that a peace accord had been achieved following extensive negotiations.
Sharif stated that both countries had agreed to an immediate and permanent end to military operations across all fronts, including activities in Lebanon. He added that a formal signing ceremony was planned in Switzerland on Friday, while discussions related to implementation would continue beforehand.
Iran’s Supreme National Security Council also confirmed the agreement through the semi-official Tasnim news agency. According to the council, military actions between all parties would cease permanently beginning Sunday night, while the naval blockade would be lifted.
However, Iranian officials noted that certain U.S. commitments outlined in the memorandum must be fulfilled before negotiations on a final comprehensive agreement can move forward.
Strait of Hormuz Reopening Timeline Remains Unclear
Although the agreement outlines the reopening of the strategic waterway, officials have not provided a precise timeline for when shipping operations will fully resume.
Trump later stated that the strait would reopen after the signing ceremony scheduled for Friday, allowing for mine-clearing operations.
Questions remain regarding reports of mines in the waterway. Previous reporting indicated that U.S. military officials had not publicly confirmed whether Iran had deployed mines in the Strait of Hormuz.
Israel’s Future Role Remains Uncertain
The agreement leaves uncertainty surrounding Israel’s next steps in the region.
The peace deal was finalized despite an Israeli military strike in Lebanon on Sunday, an action criticized by both Iranian officials and President Trump.
Israeli Defense Minister Israel Katz said that he and Prime Minister Benjamin Netanyahu would continue implementing security policies that maintain Israeli military presence in designated security zones across Lebanon, Gaza, and Syria.
He also warned that any Iranian attack against Israel would be met with a military response.
Background of the Conflict
The agreement is intended to end the conflict involving the United States, Israel, and Iran that began on February 28.
The war included the assassination of Iran’s Supreme Leader Ayatollah Ali Khamenei, along with coordinated U.S.-Israeli military operations inside Iran.
Although a ceasefire was reached in April to facilitate negotiations, sporadic attacks continued amid disputes surrounding access to the Strait of Hormuz, a critical global energy corridor that previously handled approximately 20% of the world’s oil shipments.
Oil Markets React Positively
Energy markets responded quickly to the announcement.
U.S. crude oil prices dropped more than 4.5%, falling to approximately $80 per barrel, the lowest level recorded since early March.
Brent crude also declined by around 4%, reaching roughly $83 per barrel.
Despite the decline, oil prices remain significantly higher than earlier this year, having increased more than 20% since the conflict began and over 40% since January. Prices had already started retreating last week as expectations for a diplomatic breakthrough grew.
Key Elements of the Memorandum of Understanding
According to reports from Iranian state-affiliated Mehr News, the draft memorandum contains 14 major provisions.
Among the reported elements are:
- A complete end to military operations, including actions in Lebanon
- Withdrawal of U.S. forces positioned around Iran
- Reaffirmation of Iran’s obligations under the Nuclear Non-Proliferation Treaty
- Commitments preventing the development of nuclear weapons
- Partial removal of oil and financial sanctions on Iran
- Reconstruction assistance plans from the U.S. and its allies
- Unfreezing of approximately $24 billion in Iranian assets
- Reopening of the Strait of Hormuz and lifting of the naval blockade
The report also indicates that final negotiations will take place during a 60-day period focusing on nuclear activities, sanctions relief, and resolutions involving the United Nations Security Council and the International Atomic Energy Agency.
Issues related to Iran’s missile program and support for regional resistance groups reportedly remain outside the scope of the proposed final agreement.
Signing Ceremony Still Being Organized
Trump reportedly told The Wall Street Journal that the agreement could either be signed electronically or by Vice President JD Vance during an in-person ceremony.
Vance later said logistical arrangements were still being finalized and that either he or Trump could attend the event.
He described the agreement as an important turning point, while cautioning that building lasting peace would require additional effort and time.
Lebanon Situation Continues to Draw Attention
Neither Hezbollah nor the Lebanese government immediately commented on the agreement.
Israel said its military operations in Beirut’s southern suburbs were carried out in response to attacks launched from Lebanese territory.
Lebanon’s Civil Defense Ministry reported that three people were killed during the strikes.
Trump criticized the attacks, saying they occurred at a sensitive moment when negotiators were close to achieving a peace deal with Iran and urged all parties to avoid further escalation.
International Leaders Welcome Agreement
Global leaders broadly welcomed news of the agreement and expressed optimism about regional stability.
Turkish President Recep Tayyip Erdoğan described the deal as a positive step toward lasting peace and security in the Middle East.
United Nations Secretary-General António Guterres called the agreement a critical development that could help achieve a peaceful resolution to the conflict.
Qatar’s Foreign Ministry also praised the accord, saying it could promote sustainable peace, strengthen economic growth, and reduce tensions across the region.
European leaders, including British Prime Minister Keir Starmer and French President Emmanuel Macron, emphasized the importance of reopening maritime trade routes and restoring stability to global energy markets.
Macron noted that unrestricted maritime traffic is essential for both regional security and the broader world economy.
U.S. Political Leaders Respond
Several Republican lawmakers praised the agreement and credited the administration for achieving a diplomatic breakthrough.
Senator James Lankford of Oklahoma highlighted the decades-long tensions between the United States and Iran and welcomed the agreement as a significant accomplishment.
Human Cost of the Conflict
The war has resulted in thousands of casualties across the region.
According to the U.S.-based Human Rights Activists News Agency (HRANA), more than 3,600 people have been killed in Iran since the conflict began, including over 1,700 civilians.
Additional reported deaths include:
- More than 3,700 fatalities in Lebanon
- 36 deaths across Gulf states
- 20 deaths in Israel
- 13 U.S. service members killed in action
- Two additional U.S. military deaths from noncombat causes
As diplomatic efforts continue, international observers will be watching closely to see whether the agreement leads to a lasting settlement and long-term stability throughout the region.