The United States and Iran have agreed to end their nearly four-month war, according to Pakistan Prime Minister Shehbaz Sharif, whose government mediated talks between Washington and Tehran. Sharif said Sunday on X that both sides had accepted the immediate and permanent termination of military operations on all fronts, including Lebanon. He said a formal signing ceremony is scheduled for Friday, June 19, in Switzerland.
President Donald Trump confirmed the agreement on Truth Social, saying the deal was complete and authorizing the removal of the U.S. naval blockade at the Strait of Hormuz. In a subsequent post, Trump said the strait would reopen Friday, with oil expected to move through the region again after mine-removal procedures.
Iranian state media had reported Friday that a 14-page draft memorandum included U.S. oil-sanction relief and an Iranian commitment to reopen the Strait of Hormuz within 30 days. The waterway has been effectively closed since the conflict began in late February, disrupting oil, gas, fertilizer and other shipments.
The announcement followed weeks of uncertain signals from both governments and a fragile ceasefire. Earlier Sunday, the deal appeared vulnerable after Israel said Hezbollah launched projectiles into Israeli territory, prompting Israeli strikes in Beirut. Trump urged Iran and Hezbollah not to retaliate.
The economic effects of the conflict have been significant. Supply constraints have contributed to higher energy prices and inflation concerns. U.S. annual inflation reached 4.2% in May, while the European Central Bank raised rates last week for the first time since 2023. Market expectations have shifted toward higher interest rates, and futures now indicate the Federal Reserve may raise rates before year-end.
Vice President JD Vance said the agreement could lower energy costs for Americans over time. Officials have not yet released the final text, leaving implementation details to be clarified before Friday’s signing.