Washington, United States. U.S. and Iranian officials said on Sunday they had agreed on a peace framework for a deal to end their war, halt the U.S. blockade of Iran and reopen the Strait of Hormuz. The agreement could lead to lower energy prices as oil shipments resume through the key waterway.
Agreement announcement
U.S. President Donald Trump said on his Truth Social platform at about 5:30 p.m. ET on Sunday that “The Deal with the Islamic Republic of Iran is now complete.”
His statement came shortly after Pakistan Prime Minister Shehbaz Sharif, whose country has served as a mediator, said a deal had been reached early on Monday local time. Sharif said the pact would be officially signed on Friday in Switzerland.
Terms and regional issues
The precise terms of the agreement were not immediately known. Sharif said in a post on X that the pact called for “the immediate and permanent termination of military operations on all fronts, including in Lebanon.”
Lebanon has been a sticking point in the negotiations, with Israel and Hezbollah ignoring calls from Trump and others in recent weeks to halt attacks on each other.
Hormuz reopening and market reaction
Trump said the Strait of Hormuz would reopen on Friday and that he had ordered an end to the U.S. blockade of Iranian ports. Iran has effectively shut down the major shipping lane for global energy supplies for months.
Oil prices fell after the announcement. Brent crude futures dropped 4% in early trading on Monday, while U.S. West Texas Intermediate fell more than 4.6%.
Further negotiations
Iran’s deputy foreign minister, Kazem Gharibabadi, said a broader agreement, including sanctions relief, would be negotiated during a 60-day ceasefire period.
Sources previously told Reuters that the future of Iran’s nuclear program would also be addressed in those later talks.
Conflict background
Thousands of people, mostly in Iran and Lebanon, have been killed since U.S. and Israeli forces first attacked Iran on February 28. Iran has launched strikes on Israel and Gulf states hosting U.S. bases and has effectively blockaded the Strait of Hormuz, contributing to higher global energy prices.
