A landmark peace agreement between the United States and the Islamic Republic of Iran has been reached, signaling an immediate and permanent cessation of military operations across all fronts, including Lebanon. The announcement, made by Pakistan Prime Minister Shehbaz Sharif on Sunday, brings an end to a nearly four-month conflict that has destabilized the Middle East and impacted global markets.
“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 declared in a post on X, highlighting Pakistan’s crucial role as a mediator. The official signing ceremony is slated for Friday, June 19, in Switzerland.
U.S. President Donald Trump quickly confirmed the accord on Truth Social, stating, “The deal with the Islamic Republic of Iran is now complete.” He further authorized the “toll-free opening of the Strait of Hormuz” and the “immediate removal of the United States Naval blockade,” with the strait expected to open on Friday for mine removal, ensuring oil flow for the region and the world.
U.S. President Donald Trump speaks in the Oval Office at the White House in Washington, D.C., U.S., June 11, 2026.
Daniel Heuer | Reuters
Tehran’s Supreme National Security Council corroborated the finalization of a memorandum of understanding, affirming the immediate and permanent cessation of all military actions, including in Lebanon, and the lifting of the naval blockade. However, Iranian state media, including a television banner translated by MS NOW, emphasized that the U.S. had been “forced to sign an agreement to end the war,” with negotiations for a final agreement contingent on Washington fulfilling its initial commitments.
The Ministry of Foreign Affairs in Qatar welcomed the agreement, particularly measures ensuring freedom of navigation in the Strait of Hormuz, calling it a vital step towards regional and international peace and economic growth.
European leaders from the U.K., Germany, France, and Italy also voiced their readiness to lift sanctions on Iran in exchange for nuclear program concessions. “Iran must never acquire a nuclear weapon. We stand ready to work with the US, Iran and the IAEA to this end,” they jointly stated, as reported by Reuters.
The agreement emerges after a period of intense diplomatic maneuvering and a fragile ceasefire, punctuated by weeks of ambiguous signals from both Washington and Tehran. A brief escalation earlier Sunday, involving projectiles launched by Iran-backed Hezbollah from Lebanon into Israel and subsequent Israeli strikes in Beirut, briefly jeopardized the deal, prompting President Trump to caution both sides against undermining the peace effort.
The closure of the Strait of Hormuz since late February, a crucial shipping artery, had caused significant supply chain disruptions for commodities like oil, gas, and fertilizers, pushing prices higher and sparking fears of stagflation. The U.S. annual inflation rate surged to 4.2% in May, its highest in three years, reflecting the economic strain.
U.S. Vice President JD Vance hailed the deal on Fox News, predicting a reduction in energy costs for Americans. Meanwhile, global central banks have been responding to the energy shock; the European Central Bank (ECB) recently hiked interest rates by a quarter-point for the first time since 2023, while the Federal Reserve is now anticipated to raise rates before year-end, according to the CME’s FedWatch tool.
