The United States and Iran have agreed to a peace deal that will bring an “immediate and permanent” end to military operations and reopen the Strait of Hormuz, a key global shipping route, after more than three months of conflict that rattled energy markets and raised fears of a wider regional war.
The agreement, announced on Sunday and confirmed by both Washington and Tehran, is scheduled to be formally signed in Switzerland on June 19.
The breakthrough was first announced by Pakistani Prime Minister Shehbaz Sharif, whose government helped facilitate indirect contacts between the two sides. Sharif said the agreement provides for a “permanent termination of military operations on all fronts.”
U.S. President Donald Trump later confirmed the development in a post on Truth Social.
“The Deal with the Islamic Republic of Iran is now complete. Congratulations to all,” Trump wrote.
According to Trump, the agreement includes the reopening of the Strait of Hormuz and the immediate lifting of the U.S. naval blockade on Iranian ports.
Iranian officials also confirmed plans to end hostilities, with Tehran indicating that the war would formally conclude early Monday.
The conflict, which began in late February, has continued for more than 100 days and triggered concerns over regional stability, global energy supplies and international shipping routes. The Strait of Hormuz, through which a significant share of the world’s oil trade passes, became a focal point of the crisis.
Global markets responded positively to news of the agreement. Oil prices fell by more than four percent on Monday amid expectations that the reopening of the strategic waterway would ease pressure on global energy supplies and reduce shipping risks.
Iran’s Foreign Ministry said the framework agreement represented a step toward ending the conflict but stressed that deep mistrust of the United States remained.
“Unfortunately, it must be acknowledged that Iran’s deep mistrust of the United States stems from the long history of wrongdoing by American leaders,” Foreign Ministry spokesman Esmaeil Baghaei told reporters on Monday.
Baghaei said the framework includes commitments related to the release of frozen Iranian assets abroad and compensation for war-related damages. He also said Lebanon forms part of the understanding reached between the two countries, with provisions calling for an end to hostilities on all fronts and respect for Lebanese sovereignty and territorial integrity.
The spokesman added that Iran intends to charge maritime service fees for vessels transiting the Strait of Hormuz, covering navigation, environmental protection and related services, but would not impose transit tolls.
While both sides have confirmed the broad contours of the agreement, many details remain undisclosed ahead of the planned signing ceremony in Geneva on June 19.
The agreement is expected to be closely scrutinised by regional allies, global powers and energy markets, which have been affected by months of conflict and uncertainty in one of the world’s most strategically important regions.
Israeli leaders and opposition figures have expressed concern over the emerging agreement between the United States and Iran, warning that key security issues may remain unresolved despite Washington’s declaration of a diplomatic breakthrough.
According to reports in The Washington Post, Israeli officials are particularly worried that the agreement could leave parts of Iran’s nuclear infrastructure intact while postponing decisions on issues such as Tehran’s enriched uranium stockpile and future nuclear restrictions.
The concerns have exposed fresh tensions between U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu. In an interview with The New York Times, Trump described Netanyahu as “a very difficult guy” and suggested that some Israeli military actions had complicated diplomatic efforts with Tehran.
Several Israeli politicians questioned whether Iran could be trusted to comply with future commitments and called for continued military and economic pressure. Others argued that Washington may have moved too quickly toward a settlement without securing stronger guarantees.
Analysts cited in international media reports said the success of the agreement would depend heavily on verification mechanisms and international monitoring to ensure compliance by all parties.
The disagreement is expected to feature prominently in discussions among Western leaders as details of the agreement continue to emerge ahead of its formal signing in Geneva on June 19.
Prime Minister Narendra Modi on Monday welcomed the understanding reached between the United States and Iran to end more than three months of conflict in West Asia, saying the agreement could help restore stability and ease economic disruptions caused by the war.
“I welcome the understanding reached between the United States and Iran on ending the conflict in West Asia, which has caused serious economic disruption across the world and led to loss of life in many countries,” Modi said in a social media post from the Slovakian capital, Bratislava.
The Prime Minister expressed hope that the agreement would contribute to peace and stability in the region while ensuring freedom of navigation and commerce through key international shipping routes.
Modi also welcomed further negotiations on unresolved issues to secure what he described as a sustainable final agreement.
The development comes ahead of discussions among leaders of the Group of Seven (G7) nations in France, where the implications of the conflict and the proposed settlement are expected to feature prominently.
European leaders, including those from France, Germany, Italy and the United Kingdom, also welcomed the agreement and stressed the importance of reopening the Strait of Hormuz, a critical route for global energy supplies and commercial shipping.
(With inputs from agencies)