US, Iran Announce Deal to End Middle East War, Reopen Strait of Hormuz

Agreement expected to be signed in Switzerland as questions remain over Tehran’s nuclear programme

WASHINGTON/TEHRAN — The United States and Iran have announced a breakthrough agreement aimed at ending months of conflict across the Middle East and reopening the strategic Strait of Hormuz, a vital route for global oil shipments.

The deal, which Washington and Islamabad said is expected to be formally signed in Switzerland on Friday, has been presented as a major step toward ending a war that has claimed thousands of lives, disrupted regional stability and rattled global energy markets.

US President Donald Trump declared on Sunday that negotiations with Tehran had been successfully concluded, signalling that maritime traffic through the Strait of Hormuz would soon resume.

“The Deal with the Islamic Republic of Iran is now complete,” Trump said in a social media post marking his 80th birthday. “Ships of the World, start your engines. Let the oil flow!”

Iran also confirmed progress toward ending hostilities. Deputy Foreign Minister Kazem Gharibabadi said the agreement would bring an “immediate end” to the war and pave the way for broader negotiations aimed at securing a lasting settlement.

According to Gharibabadi, both countries are expected to begin talks within two months on what he described as a “final agreement.”

Pakistani Prime Minister Shehbaz Sharif later announced that both sides had agreed to an immediate and permanent cessation of military operations across all fronts, including in Lebanon, where tensions involving Iran-backed Hezbollah have contributed to the wider regional conflict.

Sharif also acknowledged the roles played by Qatar, Saudi Arabia and Turkey in supporting mediation efforts.

Nuclear questions remain unresolved

Despite the announcement, significant uncertainty remains over key elements of the agreement, particularly Iran’s nuclear programme.

Iran’s Mehr News Agency reported that the United States would release billions of dollars in frozen Iranian assets as part of the arrangement. The agency cited a 14-point memorandum of understanding that allegedly includes the release of $12 billion before formal negotiations begin and a further $24 billion during a 60-day negotiation period.

The Trump administration has not publicly confirmed those details.

The future of Iran’s uranium enrichment programme also remains unresolved. In an interview with The New York Times, Trump said discussions were continuing over a potential suspension of Iran’s enrichment activities, indicating that Washington was considering a halt lasting between 15 and 20 years.

The US has long sought restrictions on Tehran’s nuclear activities and remains concerned about its stockpile of highly enriched uranium.

Global leaders welcome breakthrough

The announcement was met with cautious optimism from world leaders and international organisations.

United Nations Secretary-General António Guterres described the agreement as a “critical step” toward ending the conflict and restoring stability to the region.

The governments of United Kingdom, France, Germany and Italy said they were prepared to consider lifting sanctions on Iran and pledged to work with regional partners to secure a long-term diplomatic settlement.

Financial markets also reacted positively. Oil prices fell sharply in Asian trading on Monday amid expectations that energy supplies would stabilise once shipping through the Strait of Hormuz resumes. Stock markets also posted gains as investor concerns over prolonged disruption eased.

The waterway is one of the world’s most important energy corridors, handling a significant portion of global oil exports. Its closure during the conflict contributed to higher fuel prices, inflationary pressures and supply chain disruptions across multiple regions.

US Vice President JD Vance said the reopening of the strait could help reduce energy costs globally and stimulate economic growth across the Middle East.

“What we’re going to be able to do is 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 said.

Israeli strike threatened talks

The breakthrough came after a tense weekend that briefly threatened to derail negotiations.

Earlier on Sunday, Trump criticised Israel following an airstrike targeting Hezbollah-linked positions in Beirut’s southern suburbs. The US president reportedly expressed frustration that the strike could jeopardise progress toward a peace agreement.

The attack reignited fears of escalation in Lebanon, where clashes involving Hezbollah have repeatedly threatened regional ceasefires since the conflict began.

Iran has consistently insisted that any comprehensive peace arrangement must address hostilities involving Hezbollah and Lebanon alongside direct tensions between Tehran and Washington.

While the agreement has raised hopes of a broader regional de-escalation, analysts note that the success of the initiative will largely depend on the outcome of upcoming negotiations over Iran’s nuclear programme and the implementation of commitments by all parties involved.

The signing ceremony is expected to take place in Geneva on Friday, with senior officials from both countries anticipated to attend.

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A Lagos-based journalist with a passion for disseminating factual information and a deep appreciation for good music, good food, movies, and beautiful cars. He hopes to travel the world someday, documenting its beauty and diverse cultures through his storytelling.