US and Iran agree to peace deal ending war and reopening Strait of Hormuz

The agreement

Pakistan's prime minister Shehbaz Sharif announced the peace deal late on Sunday, saying a formal signing ceremony would take place on Friday in Switzerland. US President Donald Trump soon confirmed the breakthrough on his social media platform Truth Social, declaring the Strait of Hormuz open and the naval blockade of Iran's ports immediately lifted. The agreement brings an end to a conflict that began on 28 February when the United States and Israel launched military operations against Iran.

The deal with the Islamic Republic of Iran has now been concluded. Congratulations to all! I hereby fully authorize the opening of the Strait of Hormuz, with no fees, and I immediately authorize the lifting of the United States Navy blockade. Ships of the world, start your engines. Let the oil flow!

According to the Pakistani mediators, both sides declared an immediate and permanent cessation of military operations on all fronts, including in Lebanon. The deal largely restores the pre-war situation, though after thousands of dead and with Iran's newfound leverage through its control over the Strait of Hormuz, a waterway critical for global oil, gas and fertiliser supplies.

Strait of Hormuz and nuclear commitments

The draft memorandum, referred to as the Islamabad memorandum, includes several key provisions. Iran will not manufacture nuclear weapons and will dilute its stockpile of highly enriched uranium; the precise method is to be agreed within the next 60 days. The United States is to release $25 billion of frozen Iranian assets and temporarily lift oil sanctions, allowing Iran to export crude again. Washington is also to refrain from imposing new sanctions until a final peace deal is reached.

Iran's semi-official Fars news agency reported that the Strait of Hormuz will be regulated jointly by Iran and Oman. The strait normally carries a fifth of the world's oil and large volumes of liquefied natural gas. Iran's diplomacy, however, signalled it wants to charge fees for services provided in the strait.

Lebanon front and Trump's call

Hours before the agreement was announced, Israel struck Hezbollah targets in Beirut's southern suburb. President Trump immediately criticised the timing. On Truth Social, he urged Israel to halt all attacks in Lebanon and called on Hezbollah to refrain from striking Israel as well.

The morning attack on Beirut should not have taken place, especially on this special day when we are so close to a deal with Iran. Israel should no longer carry out any attacks anywhere in Lebanon, but no other party, including Hezbollah, should attack Israel either. This could be the beginning of a long and beautiful peace. Let's not ruin it.

The ceasefire announced in the peace deal covers all fronts, including Lebanon, according to the Pakistani mediators.

Iranian hesitations

Despite the announcement, Iran's semi-official Fars agency reported that Tehran has not yet made a final decision on the memorandum. Iranian state television, cited by Reuters, claimed Iran forced the United States to agree to the peace deal. Several Iranian ultra-conservative officials are resisting concessions, especially over control of the strategic strait that Iran has been de facto blocking. Iran's deputy foreign minister, quoted by Reuters, said the immediate and permanent end of the war on various fronts, including Lebanon, would be effective from Sunday night, and the US naval blockade would also end that night. The text of the memorandum is to be published after the official signing on Friday.