US and Iran agree to ceasefire and reopening of Strait of Hormuz; formal signing in Geneva on 19 June

Announcement and terms

President Donald Trump declared on Sunday that a ceasefire agreement with Iran had been completed. "The deal with the Islamic Republic of Iran is now complete. Congratulations to all!" he wrote on social media. Iranian state television IRIB, without an official confirmation from Tehran, presented the development as a victory:

“The US was forced to accept the end of the war.”

The accord provides for the reopening of the strategic Strait of Hormuz, through which a substantial share of global oil trade passes, and Trump ordered the immediate lifting of the US naval blockade of Iranian ports.

“Ships of the world, start your engines. Let the oil flow!”

The full text was not released, but the framework includes a 60-day ceasefire.

Mediation and ceremony

Pakistan’s Prime Minister Shehbaz Sharif, whose country played a pivotal mediating role, announced that both parties had declared an immediate and permanent cessation of military operations on all fronts, including Lebanon.

“The formal signing ceremony will take place on Friday, 19 June in Switzerland.”

In his statement he also thanked Qatar, Saudi Arabia and Turkey for their contributions to the talks. A series of pre-implementation meetings will be held this week to lay the groundwork for the technical discussions and the signing.

Unresolved issues

Several of the hardest questions remain open. The future of Iran’s nuclear programme and the lifting of US sanctions against Tehran have been deferred to a new round of negotiations. Both sides are seeking to present the agreement as a diplomatic success after nearly four months of war that has cost thousands of lives and roiled global markets.

Context and escalation

Earlier on Sunday the talks appeared at risk when Israel bombed the southern suburbs of Beirut in retaliation for Hezbollah rocket fire, a move that drew irritation from Trump. The ceasefire agreement includes the cessation of military operations in Lebanon as well.