US and Iran Sign Agreement to End War and Reopen Strait of Hormuz

 In a dramatic diplomatic breakthrough, the United States and Iran have signed an interim peace agreement aimed at ending their latest war and establishing a 60-day framework for a broader settlement. The deal immediately halts all hostilities and opens the strategically vital Strait of Hormuz to international shipping.

The memorandum was signed by US President Donald Trump and Iranian President Masoud Pezeshkian, marking what appears to be the first formal agreement between a sitting US and Iranian president since the Islamic Republic's founding in 1979. Pakistan Prime Minister Shehbaz Sharif confirmed key operational details of the deal on X, describing the terms of implementation.

Immediate Terms Take Effect

"The memorandum shall enter into force with immediate effect," Mr. Sharif wrote. "As a first step, the Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade."

Ships will be allowed to transit freely through the waterway for an initial two-month period, a significant development for global energy markets that had been disrupted by tensions in the region.

Oil markets reacted quickly to the announcement. Brent crude initially fell below $80 per barrel on expectations of the Strait's reopening, before partially rebounding after President Trump issued warnings about renewed military action should the agreement fail.

14-Point Framework Outlined

The full agreement consists of 14 points covering multiple areas:

• A broad ceasefire across several fronts
• Sanctions relief for Iran
• Unfreezing of Iranian assets totaling billions of dollars
• Creation of a $300 billion reconstruction fund
• Iranian commitments to not pursue nuclear weapons
• Placement of enriched uranium stockpiles under International Atomic Energy Agency supervision for monitoring and down-blending on site

Iranian Foreign Ministry spokesman Esmaeil Baghaei announced that while the signing ceremony planned in Switzerland for Friday would not proceed, negotiating teams are still expected to travel for technical talks and implementation discussions.

Trump Warns of Consequences

Speaking during the G7 summit in France, President Trump emphasized the conditional nature of the agreement. He described Iranians as "smart people" and expressed hope that the 60-day process would lead to a permanent truce and help reduce global oil prices.

"We're going to bomb the hell out of them if they violate the agreement," Trump told reporters. "I don't want them to. I want them to honour the agreement."

He added, "If I don't like it, if they don't behave, we'll go right back to dropping bombs right smack in the middle of their head," underscoring continued US pressure even as negotiators work toward a longer-term settlement.

Conflict Background

The accord follows months of conflict that erupted after the US and Israel launched a military campaign against Iran on February 28. The operation included the killing of Iran's 86-year-old supreme leader Ayatollah Ali Khamenei and senior military commanders. The war escalated into a wider regional conflict, resulting in thousands of deaths—mostly in Iran and Lebanon—and fueling global economic disruption through rising energy prices and inflationary pressures.

Under the agreement, hostilities are to end immediately across all theatres, including Lebanon where fighting between Israel and Hezbollah has continued intermittently despite earlier ceasefire efforts. The memorandum also calls for a halt in cross-border attacks and a gradual de-escalation framework intended to hold during the 60-day negotiating window.

Iranian Officials Celebrate Breakthrough

Iranian officials moved quickly to frame the deal as a major diplomatic victory. State media released photographs of the signed document, which represents a historic moment in bilateral relations.

Mohammad Bagher Ghalibaf, Iran's lead negotiator, told state television that the outcome far exceeded expectations achieved through military pressure alone.

"Everything we sought to achieve through military action, we obtained several times over through negotiation; it was not even comparable," he said, highlighting the unfreezing of Iranian assets among the gains.

Uncertainties Remain

Despite the diplomatic breakthrough, significant questions persist regarding implementation. European leaders at the G7 summit welcomed the de-escalation while expressing prior concerns over the war's legality and regional fallout. Leaders called for an immediate ceasefire in Lebanon and urged all parties to ensure stability around the strategically important Strait of Hormuz.

Both sides have maintained pressure and reserved the option of renewed confrontation, leaving uncertainty over whether the agreement can hold through the full 60-day negotiation period. For now, however, the signing marks what both governments describe as a potential turning point in one of the world's most volatile geopolitical relationships.