The United States and Iran have agreed to a peace deal aimed at ending nearly four months of conflict, with a formal signing ceremony scheduled for Friday in Switzerland, officials from both countries said Sunday.
The breakthrough follows weeks of diplomatic efforts and comes amid mounting concerns over the global economic fallout from the war, including disruptions to energy supplies and rising inflation.
Pakistan’s Prime Minister Shehbaz Sharif, whose government acted as a mediator in the negotiations, announced that the two sides had reached an agreement to bring an “immediate and permanent termination” to military operations.
“Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and the Islamic Republic of Iran has been reached,” Sharif said in a post on social media platform X.
US President Donald Trump later confirmed the agreement, describing it as a major step toward restoring stability in the Middle East.
“The deal with the Islamic Republic of Iran is now complete,” Trump wrote on his Truth Social platform.
The president also announced the lifting of the US naval blockade against Iran and authorized the reopening of the Strait of Hormuz, a vital shipping route through which a significant portion of the world’s oil exports pass.
“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,” Trump said.
More Read
Iran’s Supreme National Security Council confirmed that Tehran had finalized a memorandum of understanding with Washington and said military operations would cease “immediately and permanently.”
Iranian authorities said the lifting of the naval blockade would take effect immediately, although negotiations toward a comprehensive settlement would continue after Washington fulfilled its initial commitments under the agreement.
State media in Iran portrayed the development as a diplomatic victory, reporting that the United States had been “forced to sign an agreement to end the war.”
The conflict, which began in late February, led to the effective closure of the Strait of Hormuz and severely disrupted global energy markets. The resulting supply shortages drove up the prices of oil, natural gas and fertilizers, raising fears of a renewed period of high inflation and slowing economic growth.
Financial markets reacted positively to news of the agreement, with investors anticipating a normalization of energy supplies and reduced pressure on central banks to maintain higher interest rates.
The deal also received international backing.
More Read
Qatar welcomed the agreement and described provisions guaranteeing freedom of navigation through the Strait of Hormuz as an important step toward achieving sustainable peace and supporting economic growth.
European powers, including Britain, France, Germany and Italy, indicated they would be willing to ease sanctions on Iran if Tehran took concrete measures to address concerns over its nuclear programme.
In a joint statement, the countries reiterated that Iran “must never acquire a nuclear weapon” and expressed readiness to work with the United States, Iran and the International Atomic Energy Agency to achieve that objective.
Despite the breakthrough, challenges remain.
Tensions briefly threatened to derail the agreement earlier Sunday after Israel reported projectile launches by Iran-backed Hezbollah from Lebanon. Israeli retaliatory strikes on Beirut prompted concerns that fighting could spread and undermine the peace process.
Trump publicly urged all parties to exercise restraint.
“Don’t blow it,” he warned in remarks directed at both Iran and Hezbollah.
Analysts cautioned that while the memorandum marks a significant diplomatic achievement, much will depend on the successful implementation of the agreement and the outcome of future negotiations on Iran’s nuclear activities.
If fully implemented, the deal could represent one of the most significant geopolitical settlements in the Middle East in recent years, potentially easing regional tensions and providing relief to a global economy strained by months of conflict and energy market disruptions.
