President Trump announced a completed agreement with Iran ending three months of conflict, with the Strait of Hormuz reopening and the U.S. naval blockade lifted.
6:44 PM
President Donald Trump announced Sunday that the United States and Iran have completed a peace agreement, ending more than three months of military conflict in the Middle East.
Trump said in a Truth Social post that the deal with Iran is "now complete." He authorized the full and unconditional reopening of the Strait of Hormuz without a toll system and ordered the immediate lifting of the U.S. naval blockade of Iranian ports. "Ships of the world, start your engines. Let the oil flow!" Trump wrote.
Pakistani Prime Minister Shehbaz Sharif confirmed the agreement in a statement on social media, saying both parties have declared an immediate and permanent termination of military operations on all fronts, including in Lebanon. Sharif said an official signing ceremony will take place Friday, June 19 in Switzerland.
According to details released by Tehran, Iran has agreed not to build a nuclear weapon and to reopen the Strait of Hormuz in exchange for the United States releasing $25 billion in frozen assets. Washington and Tehran were expected to electronically sign a memorandum of understanding Sunday following a virtual meeting designed to set the stage for longer-term negotiations on Iran's nuclear program.
Oil markets reacted immediately to the announcement. U.S. crude oil futures fell 4.8 percent to $80.80 per barrel by 6:01 p.m. ET, while Brent crude, the international benchmark, traded 3.9 percent lower to $83.89 per barrel.
The conflict began February 28 following U.S. and Israeli military operations against Iran. Pakistan has served as a mediator throughout the dispute. Trump had previously warned both warring parties not to "blow" the deal and specifically called on Israel to halt strikes on Lebanon while urging Hezbollah to refrain from attacks.
U.S. Vice President J.D. Vance said he will participate in the signing ceremony on Friday in Switzerland but did not exclude the possibility that Trump might also attend. Vance described the agreement as "a great victory."
Prior to the announcement, Trump had ordered a retaliatory strike against Iran after the country downed a U.S. Army Apache helicopter. The war had thrown global markets into turmoil and created regional instability over the three-and-a-half-month period.
Iran's deputy foreign minister confirmed that military operations would be halted on all fronts, including in Lebanon. The country's state media outlets, including the Tasnim News Agency and IRNA, broadcast the announcement of the peace agreement.
Sharif thanked both the United States and Iran for their commitment to finding a diplomatic solution and extended gratitude to Saudi Arabia and other mediators involved in the effort. He noted that with the agreement now in effect, mediators will facilitate a series of meetings during the week to lay groundwork for technical discussions and the formal signing ceremony.
Iran proposes ending its control of the strategic waterway and the war in exchange for lifting U.S. sanctions, postponing nuclear talks.
Iran's military announced a complete closure of the strategic waterway in response to U.S. strikes, warning of military action against vessels attempting passage.
Two U.S. military vessels crossed the Strait of Hormuz under Project Freedom, an operation to clear blocked commercial shipping, as Iran claimed missile strikes.
President Trump extended a temporary truce with Iran pending submission of a unified proposal, while keeping U.S. military blockade in place.
Iran warned foreign vessels will be targeted if they do not comply with passage regulations through the strategic waterway.
U.S. president says deal will be finalized Saturday; Tehran signals signing could occur within days. Strait of Hormuz to open to all traffic.
