The United States and Iran have announced an agreement aimed at ending the conflict across the Middle East, including in Lebanon, and reopening the strategic Strait of Hormuz, although key details regarding Tehran’s nuclear programme remain unclear. Officials from Washington and Islamabad disclosed that the agreement is expected to be formally signed in Switzerland on Friday, marking what could be a significant step toward ending months of hostilities that have claimed thousands of lives and disrupted global energy markets.
While the full terms of the deal have not been made public, US President Donald Trump indicated that the Strait of Hormuz, a crucial route for international oil shipments, would resume normal operations following the signing ceremony.
“The deal with the Islamic Republic of Iran is now complete,” Trump wrote on social media on Sunday while celebrating his 80th birthday. “Ships of the World, start your engines. Let the oil flow!”
Iran also signalled its commitment to the agreement. Deputy Foreign Minister Kazem Gharibabadi stated in a televised address that the deal would bring an “immediate end” to the conflict between the two nations. He added that both sides would meet within two months in an effort to negotiate a “final agreement".
The announcement came amid heightened tensions in the region. Earlier on Sunday, Tehran had threatened retaliation after Israel launched a strike targeting Hezbollah, Iran’s ally, in the southern suburbs of Beirut — an incident that raised concerns about the viability of the emerging accord.
However, later in the day, Pakistani Prime Minister Shehbaz Sharif confirmed that a ceasefire arrangement had been reached.
“Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon,” Sharif said.
He also expressed appreciation to the leaders of Qatar, Saudi Arabia and Turkey for their roles in supporting the mediation efforts that led to the breakthrough.
Details remain unclear...
Despite the announcement of a breakthrough agreement between the United States and Iran, significant details of the deal remain undisclosed following weeks of tense negotiations and repeated warnings from US President Donald Trump that military action could resume if Tehran failed to reach an accord.
Iran’s Mehr News Agency reported that Washington had agreed to release $12 billion in frozen Iranian assets ahead of the commencement of formal negotiations.
According to the agency, a 14-point “memorandum of understanding” signed by both countries provides for “the release of 24 billion dollars in frozen Iranian assets during the 60-day negotiation period” set to begin once the MoU takes effect.
The Trump administration has yet to publicly address the reported provisions of the agreement, which could face scrutiny as the United States continues to push for restrictions on Iran’s nuclear activities and seeks to address its stockpile of highly enriched uranium. The uranium is believed to have been buried following US military strikes conducted last year.
Speaking in an interview with the New York Times on Sunday, Trump disclosed that negotiations were still ongoing over the duration of a possible suspension of Iran’s uranium enrichment programme.
The US president said Washington was discussing whether Tehran would halt enrichment activities for 20 years. While suggesting he could accept a shorter timeframe, Trump indicated he might settle for a 15-year suspension, though he stressed that he preferred not to conduct negotiations through the media.
Seize the Moment.
The announcement of a peace agreement between the United States and Iran was met with widespread international approval, raising hopes for a lasting resolution to the conflict that has destabilised the Middle East.
United Nations Secretary-General Antonio Guterres welcomed the development, describing it as a “critical step” toward ending the war in the region.
European powers also expressed support for the agreement. The United Kingdom, France, Germany and Italy said they were willing to remove sanctions imposed on Iran and pledged to cooperate “with the US, Iran and regional partners to seize this moment, maintain momentum and achieve a long-term diplomatic settlement".
Financial markets reacted positively to the news when trading opened on Monday. Oil prices fell by more than four percent in Tokyo, while Japan’s benchmark Nikkei stock index surged by three per cent.
The prospect of reopening the Strait of Hormuz eased concerns over global energy supplies. The closure of the strategic waterway had triggered economic repercussions worldwide, contributing to higher fuel costs, rising inflation in the United States and other countries, and disruptions in supply chains, including shipments of fertiliser essential for agricultural production across multiple regions.
US Vice President JD Vance said the agreement could deliver long-term economic benefits both globally and within the Middle East.
“What we’re going to be able to do is drive down the cost of energy, not just now but for the long term, and create a real engine of prosperity in the Middle East,” Vance told Fox News.
He also confirmed plans to attend the signing ceremony for the peace agreement, which is scheduled to take place in Geneva. Vance added that President Donald Trump could also be present at the event.
Israel continues to strike.
Sunday saw dramatic twists in efforts to finalise the US-Iran peace agreement, with President Donald Trump publicly expressing frustration over an Israeli airstrike on Beirut that he said had delayed the signing of the deal.
Speaking in a phone interview with US news outlet Axios, Trump sharply criticised Israeli Prime Minister Benjamin Netanyahu over the development.
“I was so pissed off. I let him know,” Trump said.
The strike on Beirut's southern suburbs threatened to undermine progress toward the agreement. The previous Israeli attack on the area had triggered one of the most serious escalations since the ceasefire took effect in April. In response to that earlier strike, Iran launched a barrage of missiles, prompting retaliatory Israeli attacks.
Iran has consistently maintained that any comprehensive agreement to end the broader regional conflict must also address the parallel hostilities in Lebanon. Israel has continued military operations there against Hezbollah, the Iran-backed militant group that has been a key player in the conflict.
