SRINAGAR: The United States and Iran have reached a preliminary agreement to halt a war that has shaken the Middle East for more than three months, reopen the strategically vital Strait of Hormuz and begin negotiations on a broader settlement that would address Tehran’s nuclear programme and sanctions relief.
The breakthrough, announced by US President Donald Trump, Pakistani Prime Minister Shehbaz Sharif and senior Iranian officials, marks the most significant diplomatic development since the conflict erupted following joint US-Israeli strikes on Iran on February 28.
“The Deal with the Islamic Republic of Iran is now complete,” Trump wrote on his Truth Social platform on Sunday, declaring that the United States would end its naval blockade of Iran and that the Strait of Hormuz would reopen.
The memorandum of understanding is expected to be formally signed in Switzerland on June 19 following a series of technical and preparatory meetings facilitated by mediators, including Pakistan and Qatar.
Prime Minister Shehbaz Sharif announced the breakthrough on X, stating: “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. Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon.”
Sharif said mediators would hold further meetings this week to prepare for implementation and thanked Qatar, Saudi Arabia and Türkiye for their role in supporting the negotiations.
War to End on All Fronts
Iran’s Supreme National Security Council confirmed that the text of the memorandum had been finalised and said military operations would cease immediately.
According to a statement released by the council and circulated by Iranian media, “the war and military operations on all fronts, including Lebanon, will end immediately and permanently from tonight, and furthermore, the naval blockade against Iran will be immediately and completely lifted.”
Iranian Deputy Foreign Minister Kazem Gharibabadi also confirmed that the memorandum had been finalised and that the official signing would take place in Switzerland on Friday.
The agreement appears to address one of the most contentious issues in the negotiations: the fighting involving Israel and Hezbollah in Lebanon. Israel has repeatedly insisted on maintaining freedom of military operations against Hezbollah, while Iran had made a comprehensive ceasefire in Lebanon a central demand.
Israeli officials had not issued an immediate response to the announcement. Israel has not been a party to the US-Iran negotiations.
Global Markets
A key feature of the agreement is the reopening of the Strait of Hormuz, through which roughly one-fifth of global oil shipments normally pass.
Trump wrote: “Ships of the World, start your engines. Let the oil flow!”
The announcement triggered an immediate reaction in global markets.
Brent crude futures fell by more than $4 per barrel in early Asian trading, while major stock indices across Asia surged. Japan’s Nikkei and South Korea’s Kospi both recorded gains exceeding 4 percent in early trading as investors welcomed signs of de-escalation.
However, energy analysts cautioned that the return to normal shipping conditions could take months.
Daniel Evans, Global Head of Fuels and Refining Research at S and P Global Energy, said restoring normal energy flows would require insurers, shipping operators and producers to regain confidence in the stability of the region.
“It’s going to take time for people to feel comfortable and for insurance to be in place … particularly to get people on the ground to restart some of these assets,” Evans said.
Analysts noted that oil-producing countries that shut down production during the conflict would need time to resume output and restore supply chains disrupted by months of fighting and maritime restrictions.
Unresolved Issues
While the memorandum establishes a ceasefire framework, major questions remain unresolved, particularly concerning Iran’s nuclear programme.
Iran and the United States are expected to use a proposed 60-day ceasefire period to negotiate a comprehensive settlement covering sanctions relief, uranium enrichment and the future of Iran’s stockpile of highly enriched uranium.
Before the agreement was announced, officials familiar with the negotiations indicated that discussions had included proposals involving the release of billions of dollars in frozen Iranian assets and various options for handling Iran’s enriched uranium reserves.
The United States has long demanded the removal or destruction of Iran’s stockpile, while Tehran has insisted its nuclear programme is peaceful and has resisted external control over its enriched uranium.
Republican Senator Lindsey Graham welcomed the breakthrough but stressed that Congress would closely scrutinise any eventual nuclear accord.
“Under our law, any nuclear deal with Iran will be sent to Congress for review and a vote,” Graham said. “Congratulations to all in getting us to this point.”
Former US State Department spokesman Matthew Miller, who served during the Biden administration, argued that important questions remained unanswered.
“We have no assurances the nuclear program will ever be addressed, but Iran has shown the world it can take the global economy hostage and get something from the US in return,” Miller said.
Thousands of Lives Lost
The war has killed thousands of people across Iran, Lebanon and other parts of the region since fighting began in late February.
Iran launched strikes against Israel and against Gulf states hosting US military facilities, while the closure of the Strait of Hormuz sent global energy prices sharply higher and disrupted international shipping.
The conflict also generated growing political pressure on Trump domestically, as American consumers faced rising fuel prices and concerns over inflation ahead of upcoming midterm elections.
Breakthrough Welcomed
European powers welcomed the development while emphasising that negotiations over Iran’s nuclear activities must continue.
In a joint statement, Britain, France, Germany and Italy said they were prepared to consider sanctions relief in response to verifiable Iranian steps limiting its nuclear programme.
British Prime Minister Keir Starmer said freedom of navigation through the Strait of Hormuz must be restored and reiterated that Iran should never acquire a nuclear weapon.
The announcement came as Trump marked his 80th birthday by hosting an unprecedented UFC mixed martial arts event on the White House South Lawn.
Speaking during the event, Trump celebrated the preliminary peace agreement while thousands attended the spectacle organised with UFC President Dana White.
The contrast between a major diplomatic breakthrough in the Middle East and a cage-fighting event at the White House drew widespread attention online.
Political commentator Mario Nawfal wrote on X: “The U.S.-Iran deal appears to be moving from rumor to reality.”
He noted that while Washington and Tehran appeared close to ending hostilities and reopening the Strait of Hormuz, major conflicts elsewhere, including the war in Ukraine, continued to escalate.
Challenges Ahead
Despite the optimism surrounding the announcement, diplomats and analysts cautioned that the memorandum remains only a preliminary framework.
The agreement still requires formal signing, implementation mechanisms and resolution of complex issues surrounding sanctions, uranium enrichment, regional security arrangements and verification procedures.
Questions also remain regarding Israel’s role, Hezbollah’s response and whether all parties will adhere to commitments made during the ceasefire period.
Nevertheless, the accord represents the clearest pathway yet toward ending a conflict that has destabilised the Middle East, disrupted global energy markets and heightened fears of a wider regional war.
If successfully implemented, the agreement could reopen one of the world’s most important maritime trade routes and create the conditions for broader negotiations between Washington and Tehran after years of escalating tensions.
