WASHINGTON/TEHRAN — The United States and Iran have reached a landmark framework agreement aimed at ending months of conflict and easing tensions across the Middle East, marking the most significant diplomatic breakthrough between the two countries in years.
The agreement, reportedly brokered by Pakistan with support from Qatar, Saudi Arabia and Turkey, includes the reopening of the Strait of Hormuz, the lifting of a US naval blockade on Iranian ports and an initial 60 day ceasefire intended to create space for broader negotiations.
US President Donald Trump announced the breakthrough on social media, declaring that the deal had been finalized and authorizing the reopening of one of the world’s most strategically important waterways.
“The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!” Trump wrote.
Pakistani Prime Minister Shehbaz Sharif, who has played a central mediation role, confirmed the agreement and said a formal signing ceremony is expected to take place in Geneva, Switzerland, on Friday.
Iranian Deputy Foreign Minister Kazem Gharibabadi described the accord as bringing an “immediate end” to the war between Washington and Tehran and said hostilities would cease across all fronts, including Lebanon.
Strait of Hormuz at the Center of the Deal
The memorandum of understanding establishes an initial 60 day ceasefire, extendable by mutual consent, while negotiators pursue a comprehensive settlement.
At the heart of the agreement is the Strait of Hormuz, a narrow waterway linking the Persian Gulf to global markets and carrying nearly 20 percent of the world’s crude oil exports. The route has been at the center of the conflict since Iran imposed restrictions following US and Israeli strikes in February.
Under the proposed arrangement, Iran is expected to restore normal shipping conditions, remove naval obstacles and clear mines within weeks of the agreement taking effect.
However, questions remain over how the strait will ultimately be managed. While Trump has insisted that the waterway will remain permanently toll free, Iranian media reports suggest shipping could still operate under arrangements overseen by Tehran, highlighting one of several unresolved issues likely to feature in follow up negotiations.
European leaders have strongly backed the reopening of the strait.
European Commission President Ursula von der Leyen said freedom of navigation must be restored immediately and without charges, describing the move as essential for both regional stability and the global economy.
German Foreign Minister Johann Wadephul echoed the call, insisting that shipping through the strategic passage must resume without restrictions or customs duties.
Sanctions Relief and Nuclear Commitments
The agreement also provides for temporary sanctions relief. Washington is expected to waive key oil related sanctions, allowing Iran to resume crude exports during the ceasefire period.
Reports vary on the amount of Iranian assets to be released. Iranian media has reported figures ranging from $12 billion to $24 billion, while other reports suggest the total value of unfrozen assets could reach $25 billion during the negotiation period.
On the nuclear issue, Iran has reportedly pledged not to develop or acquire nuclear weapons and to freeze further expansion of its nuclear activities during the ceasefire.
Yet significant uncertainty remains. President Trump said negotiations are continuing over whether Iran would suspend uranium enrichment for up to 20 years, while broader questions surrounding Tehran’s missile program, stockpile of highly enriched uranium and international inspections have been left for future talks.
French President Emmanuel Macron said the agreement would be a key topic at this week’s G7 summit, where leaders are expected to discuss the long term reopening of the Strait of Hormuz as well as Iran’s nuclear and ballistic missile programs.
Markets Rally as Oil Prices Fall
Global markets welcomed news of the breakthrough.
Oil prices fell sharply on expectations that Gulf exports could soon return to normal levels. Brent crude dropped below $84 per barrel, while US benchmark West Texas Intermediate approached $80 per barrel for the first time since the conflict escalated.
Stock markets across Asia surged, with major indices in Tokyo and Seoul gaining more than 5 percent as investors reacted positively to the prospect of improved energy security and reduced geopolitical risk.
Israel Signals Reservations
Despite widespread international support, the deal has already drawn criticism from some Israeli officials.
Israeli National Security Minister Itamar Ben Gvir dismissed the agreement, arguing that it does not address Israel’s security concerns and insisting that Israel is not bound by its terms.
“Trump’s agreement does not bind us. We are not party to this agreement,” Ben Gvir said, calling for continued pressure against Hezbollah in Lebanon.
His comments came as Israeli Defence Minister Israel Katz stated that Israeli forces would remain in security zones in Lebanon, Syria and Gaza indefinitely, underscoring the challenges that remain even if the US Iran conflict winds down.
Notably, Israel was not directly involved in the Pakistan mediated negotiations, despite having joined the United States in launching military operations against Iran earlier this year.
A First Step, Not a Final Settlement
The conflict erupted after US and Israeli strikes on Iranian military and nuclear targets in late February, triggering Iranian retaliation and severe disruptions to shipping through the Strait of Hormuz.
While the new agreement has been welcomed by the United Nations, the European Union and governments across the Middle East, analysts caution that it remains a framework rather than a final peace treaty.
Experts note that many of the issues that fueled the conflict, including Iran’s nuclear ambitions, regional proxy networks, ballistic missile program and broader security concerns, remain unresolved.
“This is just kicking the can down the road to the next conflict,” some regional analysts have warned, arguing that the ceasefire postpones rather than settles the most contentious disputes.
Even so, the agreement represents the clearest path toward de escalation since the war began more than three months ago. If successfully implemented, it could lower global energy costs, restore stability to one of the world’s most important shipping lanes and create an opening for wider diplomatic engagement across the Middle East.
Further details are expected following the formal signing ceremony in Geneva later this week.
