The United States and Iran have agreed to a memorandum of understanding (MoU) that brings an “immediate and permanent” end to military operations across all fronts, including Lebanon. The announcement, mediated by Pakistan, marks the apparent conclusion of more than three months of war in the Middle East.
A signing ceremony has been scheduled for Friday in Switzerland, with both Washington and Tehran quickly confirming the agreement after Pakistan’s initial announcement. Importantly, the deal also outlines plans to reopen the Strait of Hormuz, ease sanctions, and pave the way for further negotiations on nuclear issues.
US President Donald Trump announced the development on social media, marking his 80th birthday. He wrote: “The Deal with the Islamic Republic of Iran is now complete,” before adding, “I hereby fully authorise the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorise the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!”
Meanwhile, Iran’s Deputy Foreign Minister, Kazem Gharibabadi, confirmed the agreement brought an immediate end to the war, and stated that both countries would hold talks within two months to pursue a final settlement.
Tense Final Hours Before Agreement
Notably, the deal came together despite a turbulent final day of negotiations. Just hours before the announcement, Tehran had vowed to retaliate against an Israeli strike on Hezbollah targets in Beirut’s suburbs, a move that initially threatened to derail the agreement. However, Pakistani Prime Minister Shehbaz Sharif later confirmed both sides had agreed to halt operations, while thanking Qatar, Saudi Arabia, and Turkey for their mediation support.
According to Iran’s Mehr news agency, the deal includes a 14-point memorandum stipulating the release of $24 billion in frozen Iranian assets over a 60-day negotiation period. The Trump administration has not yet commented on these specific details, which could prove contentious given ongoing US efforts to address Iran’s nuclear program and uranium stockpile.
Global Relief
The international response has been overwhelmingly positive. UN Secretary-General Antonio Guterres described the agreement as a critical step toward resolving the broader regional conflict, while the UK, France, Germany, and Italy expressed readiness to lift sanctions and work alongside the US and regional partners to maintain momentum.
Furthermore, markets reacted swiftly to the news on Monday: oil prices dropped more than four percent in Tokyo, while Japan’s Nikkei index rose three percent. The reopening of the Strait of Hormuz is expected to ease global supply chain pressures, particularly for energy and fertiliser markets that have been strained since the blockade began.
US Vice President JD Vance told Fox News that the deal would “drive down the cost of energy, not just now but for the long term, and create a real engine of prosperity in the Middle East.” He confirmed plans to attend the Geneva signing ceremony, noting Trump could also be present.
The conflict originally erupted in late February following US-Israeli strikes on Iran, which responded with attacks on Israel, regional US allies, and a blockade of the Strait of Hormuz. The US subsequently imposed its own blockade on Iranian ports, escalating tensions that have now culminated in this landmark agreement.
