US and Iran peace deal includes Strait of Hormuz reopening, signing set for Geneva on Friday
The US and Iran announced a permanent ceasefire and the imminent reopening of the Strait of Hormuz, with a formal signing expected on 19 June in Geneva.
Announcement
On Sunday night, US President Donald Trump and Pakistani Prime Minister Shehbaz Sharif announced that Washington and Tehran had reached a peace agreement. Sharif wrote on X that both sides had declared "the immediate and permanent termination of military operations on all fronts, including in Lebanon." The deal follows nearly four months of conflict that had paralysed shipping through the Strait of Hormuz.
Terms of the agreement
The full text of the memorandum of understanding, which runs to 14 points according to Iran’s Mehr news agency, has not been released. However, the draft reportedly includes a permanent ceasefire, an end to the US naval blockade of Iranian ports, a commitment by Washington to withdraw all its forces from the vicinity of Iran, and a 60-day extension for negotiations on Iran’s nuclear programme. The deal also foresees the unfreezing of $24 billion in Iranian assets, with talks set to begin once half that sum is released. Trump, writing on Truth Social, said the Strait of Hormuz would reopen “without tariffs” and urged ships to “let the oil flow.” But Mehr reported that mines in the waterway could delay its full reopening by up to 30 days.
International reaction
The agreement drew swift praise.
European Council President António CostaFreedom of navigation is essential for regional stability and the global economy.
German Chancellor Friedrich Merz called the deal a “diplomatic breakthrough” and said it could pave the way for global economic recovery. Portuguese President António José Seguro expressed hope that it would bringhailed the end of this costly war and the full restoration of freedom of navigation in the Strait of Hormuz.
to the region. Saudi Arabia welcomed the accord but insisted that the security interests of regional states be taken into account, while Egypt described it as a “major turning point.” Qatar, Turkey, and Portugal’s government all thanked the mediators, singling out Pakistan’s “tireless” efforts.peace, security and stability
Maritime and trade impact
The International Maritime Organization (IMO) said the ceasefire would allow it to proceed with plans to evacuate around 20,000 crew members from 1,600 vessels that have been trapped in the Persian Gulf and Strait of Hormuz since late February. IMO Secretary-General Arsenio Dominguez paid tribute to
The agency recorded 46 attacks on ships in the area since 28 February, causing 14 deaths. Oil markets reacted positively: the price of crude fell in early trading on Monday to its lowest level since March, before the details of the reopening timeline became clear.the courage and resilience of seafarers in the face of prolonged uncertainty.
Next steps
The US and Iran are expected to sign the memorandum of understanding in Geneva on Friday, 19 June, after preparatory meetings this week. The agreement opens a 60-day window for detailed negotiations on Iran’s nuclear programme, which many analysts see as the most challenging part of the process. Commander Gonçalves Alexandre, a Portuguese security analyst, urged caution, noting that much remains unknown about the terms and that several similar announcements in recent weeks had come to nothing.
- Peace deal announced by US President Trump and Pakistani PM Sharif
- Memorandum of understanding to be signed in Geneva
- Deadline for nuclear negotiations under 60-day clause
