Washington: In a significant diplomatic development that could alter the geopolitical dynamics of West Asia, the United States and Iran have announced an agreement aimed at ending months of military confrontation and restoring navigation through the Strait of Hormuz, one of the world’s most crucial energy corridors.
The announcement comes after nearly three months of heightened tensions that had raised fears of a wider regional conflict and sent shockwaves through global oil markets.
The first indication of the breakthrough came from Pakistan Prime Minister Shehbaz Sharif, who revealed that sustained negotiations had resulted in a peace understanding between Washington and Tehran. According to him, both nations have agreed to bring military operations to a permanent halt across all theatres, including Lebanon.
Sharif also disclosed that the formal signing ceremony is scheduled to take place in Switzerland on June 19, with preliminary discussions set to begin this week before technical negotiations commence. He acknowledged the diplomatic support extended by Qatar, Saudi Arabia and Türkiye in facilitating the process.
Shortly after Sharif’s announcement, US President Donald Trump confirmed that an agreement had been finalised. In a statement posted on Truth Social, Trump declared that the Strait of Hormuz would reopen without tolls and that the US naval blockade would be lifted immediately, allowing commercial shipping to resume normal operations.
Trump stated that a memorandum of understanding had already been signed, adding that the complete details of the arrangement would be released in the coming days. Speaking after arriving in France for the G7 Summit, he reiterated that the agreement had been successfully concluded.
Iran later confirmed that negotiators had finalised the text of the memorandum following months of discussions. The country’s Supreme National Security Council announced that military operations would cease immediately and permanently while confirming the removal of the naval blockade imposed during the conflict.
Tehran also indicated that broader negotiations on long-term issues would begin only after all parties fulfilled the commitments outlined in the memorandum. Iranian authorities expressed appreciation to Pakistan and Qatar for their role in advancing the diplomatic initiative.
The agreement is expected to ease pressure on global energy markets after the conflict disrupted nearly one-fifth of worldwide oil shipments and drove crude prices above the $100-per-barrel mark. Financial markets responded positively to the announcement, with equities rallying and oil prices retreating amid expectations of improved supply stability.
Despite the optimism, the development has highlighted divisions within the region. Israeli National Security Minister Itamar Ben-Gvir asserted that Israel was not bound by the understanding reached between Washington and Tehran and would continue to pursue its own security objectives, including operations against Hezbollah.
Several critical issues also remain unresolved, including Iran’s nuclear programme, the future of international sanctions and the framework governing freedom of navigation through the Strait of Hormuz. These matters are expected to be addressed during a planned 60-day phase of follow-up negotiations.
If the commitments made by both sides are fully implemented, the accord could mark one of the most consequential diplomatic breakthroughs in West Asia in recent years, potentially reducing regional instability while restoring confidence in global energy supply chains.
