The United States and Iran say they have reached an agreement to end months of fighting, with a formal signing ceremony scheduled for June 19 in Geneva, Switzerland.
The announcement has raised hopes that the conflict, which began on February 28, could move toward a lasting settlement, although several key issues remain unresolved.
US President Donald Trump announced the breakthrough on Sunday, saying the agreement would reopen the Strait of Hormuz and end the US naval blockade of Iranian ports after the signing.
“The Strait of Hormuz will be permanently toll-free,” Trump said, adding that military action could resume if future negotiations on Iran’s nuclear program fail.
Iran also confirmed the agreement but presented a different view of what will happen after the signing. Deputy Foreign Minister Kazem Gharibabadi said Tehran would begin implementing the deal only after it is formally signed on June 19 and would make the removal of sanctions its first priority.
“We have several issues to address. The first is the termination of all sanctions against the Islamic Republic of Iran,” Gharibabadi said.
The two governments have also disagreed over frozen Iranian assets. Iranian officials say the release of billions of dollars held abroad should come before a new 60-day round of negotiations. A US official rejected that claim, saying, “This is a pay-for-performance deal and no frozen funds will be released without the Iranians implementing their commitments.”
Pakistan played a central role in the negotiations alongside Qatar, Saudi Arabia and Türkiye.
Prime Minister Shehbaz Sharif announced on June 15 that the peace agreement had been reached after intensive talks.
“Both sides have agreed to the immediate and permanent termination of military operations on all fronts, including in Lebanon,” Sharif said on X.
He thanked the United States and Iran for choosing diplomacy and praised the leadership of Qatar, Saudi Arabia and Türkiye for supporting the negotiations.
Pakistan’s Foreign Minister Ishaq Dar confirmed that the signing ceremony will take place in Geneva and described the agreement as “a significant breakthrough” that would provide confidence to global markets.
Qatar’s Prime Minister Mohammed bin Abdulrahman bin Jassim Al Thani urged all parties to continue in a “positive and constructive spirit” to strengthen the agreement.
UN Secretary-General António Guterres called the agreement “a critical step towards the peaceful settlement of the conflict.”
French President Emmanuel Macron urged “swift and full implementation” of the memorandum.
Turkish President Recep Tayyip Erdoğan welcomed the framework but warned against “rhetoric, provocations and actions that could escalate tensions” before the signing.
Australian Prime Minister Anthony Albanese and Foreign Minister Penny Wong called on both sides to “pursue a durable and lasting peace through dialogue and diplomacy.”
However, Israel has not issued an official response to the agreement.
Before the announcement, Israeli forces carried out air strikes in Beirut. Trump criticised Israeli Prime Minister Benjamin Netanyahu, saying, “He’s a very difficult guy,” and argued that Israel should appreciate the diplomatic effort.
The absence of an official Israeli position has created uncertainty over whether fighting connected to Lebanon will stop as planned.
Financial markets responded quickly to the announcement.
Brent crude oil prices fell by about four percent as traders expected the reopening of the Strait of Hormuz, one of the world’s busiest energy routes. Stock markets across Asia also gained, with Japan’s Nikkei 225 reaching a record high while South Korean, Hong Kong and Chinese markets moved higher.
Analysts said lower oil prices could ease inflation pressures and improve economic confidence in countries that depend heavily on Middle Eastern energy supplies.
What the Agreement Includes
The full text of the agreement has not been released. However, officials have outlined several expected measures:
- An end to military operations between the United States and Iran.
- The reopening of the Strait of Hormuz.
- The lifting of the US naval blockade after the signing.
- A 60-day negotiation period on Iran’s nuclear program, sanctions and other unresolved issues.
Some reported draft provisions, including the release of frozen Iranian assets, have not been independently confirmed.
Background of the Conflict
The war began on February 28, 2026, after the United States and Israel launched attacks on Iran. The fighting expanded across the region and disrupted shipping through the Strait of Hormuz, a route that carries nearly one-fifth of the world’s oil supplies.
The conflict killed several senior Iranian leaders, including Supreme Leader Ayatollah Ali Khamenei, senior security officials, and military commanders. Mojtaba Khamenei allegedly assumed the position of supreme leader.
Pakistan and Qatar later helped broker a temporary ceasefire, which was extended several times while negotiations continued.
So far, the agreement is the strongest diplomatic progress since the conflict began, but it does not guarantee a permanent end to hostilities.
The document still needs to be signed on June 19, and major issues, including sanctions, nuclear restrictions and implementation timelines, remain under negotiation.
If the signing proceeds as planned and both sides carry out their commitments, the agreement could bring an end to months of conflict and restore stability to one of the world’s most important strategic regions.
