US and Iran reach peace deal: Strait of Hormuz to reopen, nuclear freeze, and $25bn in frozen assets to be released

Announcement and ceasefire

Pakistan's Prime Minister Shehbaz Sharif announced on 14 June that Iran and the United States had finalized a memorandum of understanding to end the Gulf war. The deal, mediated by Pakistan and Qatar, includes an "immediate and permanent" cessation of military operations on all fronts, including Lebanon.

Both sides have declared the immediate and permanent cessation of military operations on all fronts, including in Lebanon.

The announcement came after a final day of heavy fighting, with Israel attacking Hezbollah positions in Lebanon. Donald Trump, celebrating his 80th birthday, confirmed the agreement on Truth Social, calling it "complete" and authorizing the reopening of the Strait of Hormuz.

I fully authorize the free opening of the Strait of Hormuz and, simultaneously, I authorize the immediate withdrawal of the US naval blockade. Ships of the world, start your engines!

Strait of Hormuz and naval blockade

Under the memorandum, Iran will reopen the strait to commercial shipping within 30 days, while the United States will lift its naval blockade on Iranian ports in the same timeframe. The closure of Hormuz had halted roughly 20% of global oil flows since the conflict began in late January, triggering a severe energy crisis. The US removal of the blockade is to be completed within 30 days of the signing.

Oil prices dropped nearly 5% on news of the agreement, according to market reports, after having risen over 40% since the start of the conflict.

Nuclear provisions

Iran has committed to neither produce nor acquire nuclear weapons and will not further enrich uranium or expand its nuclear facilities while a final agreement is negotiated. The highly enriched uranium stockpiles already held by Iran will be addressed in a second phase of talks, with Washington indicating openness to Iran diluting them on its own territory under UN inspection rather than shipping them abroad. The fate of Iran's missile programme and its support for armed groups in the region were excluded from the memorandum at Tehran's insistence.

A broader agreement will be negotiated during a 60-day ceasefire period, which will include the easing of sanctions against Iran.

Sanctions and frozen assets

The United States has suspended oil and petrochemical sanctions, allowing Iran to resume crude exports. Washington also pledged no new sanctions until a final deal is reached. The memorandum provides for the release of Iranian frozen assets: reports vary, with the Mehr news agency citing an immediate availability of $12 billion, while other sources, including Reuters and Il Messaggero, point to a total of about $25 billion, half of which is to be made available before the start of final negotiations. A reconstruction and development plan for Iran, valued at at least $300 billion according to Rai news, is also to be discussed.

Reactions and next steps

The official signing of the memorandum is set for 19 June in Geneva, with US Vice President JD Vance expected to attend, possibly alongside Trump, who then travels to the G7 summit in Évian, France. A UN Security Council resolution will endorse the final agreement. Israel has reacted with significant silence, while Minister Orit Strock called an agreement that limits Israeli security manoeuvres "unacceptable." The United Kingdom, France, Germany and Italy issued a joint statement welcoming the deal and committing to a multilateral demining mission in the Strait of Hormuz.

Why did he have to launch a fucking attack? I was so furious. I let him know. He has no fucking judgment.

Trump's anger was directed at Benjamin Netanyahu for the Israeli strike in Lebanon, which US officials said had delayed the electronic signing of the Islamabad memorandum.