The United States and Iran have reached a peace agreement aimed at ending nearly four months of conflict that has unsettled the Middle East, disrupted energy supplies, and added pressure to the global economy.
Pakistan Prime Minister Shehbaz Sharif announced the breakthrough on Sunday, saying Islamabad had helped mediate talks between Washington and Tehran. The agreement is expected to be signed in Switzerland on Friday, 19 June, and includes a halt to military operations across all fronts, including Lebanon.
“Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED,” Sharif said in a post on X.
U.S. President Donald Trump confirmed the deal shortly afterwards on Truth Social, writing, “The deal with the Islamic Republic of Iran is now complete.”
Trump said he had authorised the lifting of the U.S. naval blockade and the reopening of the Strait of Hormuz, a key passage for oil and gas shipments. The waterway has been effectively closed since the conflict began in late February, adding to supply shortages and pushing up prices for fuel, fertilisers, and other goods.
Iran’s Supreme National Security Council said Tehran had finalised a memorandum of understanding with Washington and that military action, including operations linked to Lebanon, would stop “immediately and permanently.” However, Iranian officials said wider negotiations would continue only after the U.S. fulfilled its initial commitments.
The announcement came after a tense weekend in which Israel said Hezbollah had fired projectiles from Lebanon, prompting Israeli strikes in Beirut. Trump warned Iran and Hezbollah against further retaliation and urged both sides not to “blow it.”
Qatar welcomed the deal, saying it could help protect freedom of navigation through the Strait of Hormuz and support regional stability. European governments, including the UK, Germany, France, and Italy, also signalled they were prepared to consider sanctions relief if Iran takes credible steps on its nuclear programme.
“Iran must never acquire a nuclear weapon. We stand ready to work with the U.S., Iran and the IAEA to this end,” the nation’s leaders reportedly said.
The economic stakes remain high. U.S. inflation rose to 4.2% in May, its highest level in three years, while the European Central Bank raised interest rates last week for the first time since 2023 as energy costs continued to feed inflation.