US and Iran Declare Peace, but the Deal Remains Tentative
Prime Minister of Pakistan Shehbaz Sharif announced that the United States (US) and Iran have reached a peace agreement following intensive negotiations. The deal reportedly includes the immediate and permanent cessation of all military operations, marking a potential de-escalation of the tensions that have long embroiled the two countries.
“After intensive negotiations, we are pleased to announce that a peace agreement between the United States and the Islamic Republic of Iran has been reached,” Sharif wrote on the X platform.
According to Sharif, both countries have also agreed to halt military operations on all fronts, including those related to Lebanon. He added that the signing ceremony for the agreement is scheduled to take place on Friday, 19 June, in Switzerland.
US President Donald Trump also stated that the peace agreement with Iran had been completed. “The deal with the Islamic Republic of Iran is now complete. Congratulations to all!” Trump wrote on the Truth Social platform. Trump also stated he had given full authorisation for the unimpeded reopening of the Strait of Hormuz and to immediately lift the US naval blockade that had been imposed on the strategic shipping lane. “Ships of the world, fire up your engines. Let the oil flow again!” Trump wrote. Trump’s statement came shortly after Pakistan’s Prime Minister Shehbaz Sharif announced the successful agreement between the US and Iran.
Leaders from Germany, the UK, France, and Italy welcomed the breakthrough in peace negotiations between the US and Iran announced on Sunday evening. In a joint statement, UK Prime Minister Keir Starmer called the deal “a very important step towards ending the war.” He stressed that attention must now be directed at keeping the Strait of Hormuz open to minimise the economic impact of the conflict, while ensuring the details of the deal regarding Iran’s nuclear programme can be finalised. Starmer also said the four countries are prepared to lift relevant sanctions if Iran takes clear and verifiable steps regarding its nuclear programme.
Meanwhile, Qatar, which co-mediated the negotiations, also welcomed the peace agreement announcement. “We hope all parties can participate in the next round of negotiations with a positive and constructive spirit, so that this progress can be maintained and become a foundation for the next steps,” said Prime Minister and Foreign Minister of Qatar Mohammed bin Abdulrahman Al Thani in a statement posted on the X platform.
Iran confirmed that an initial agreement had been reached with the United States to end the ongoing conflict. The Iranian government stated the deal includes the cessation of military operations in Iran and Lebanon, as well as the reopening of shipping lanes in the Strait of Hormuz. Deputy Foreign Minister of Iran Kazem Gharibabadi said the agreement also marks a permanent end to the war on various fronts. “The immediate and permanent end to the war has been announced on all fronts, including in Lebanon,” Gharibabadi said in a statement broadcast by Iranian state television.
Meanwhile, US President Donald Trump stated the Strait of Hormuz would only be reopened for shipping traffic on Friday, coinciding with the signing of the peace deal. Via the Truth Social platform, Trump said the opening of the route would also be used for sea mine clearance operations so that oil distribution flows could return to normal. “With the opening of the Strait of Hormuz after the deal signing on Friday, for mine clearance purposes, oil will flow in both directions for the region and the world,” Trump wrote.
The conflict, which has raged in recent months, has disrupted the distribution of oil and gas through the Strait of Hormuz, a strategic route that transports about 20 per cent of the world’s crude oil supply. News of the peace deal immediately affected global energy markets. The US benchmark oil price, West Texas Intermediate (WTI), fell about 4 per cent in trading in Tokyo. Meanwhile, Brent crude also weakened by a similar amount to around US$84 per barrel.
On the other hand, although the peace deal announcement was widely welcomed by the US Republican Party, several members of Congress from the same party voiced concerns over the lack of details about the contents of the agreement. Republican Senator Lindsey Graham, known for taking a hard line against Iran, said he would be “watching closely” the development of negotiations related to Iran’s nuclear programme. “I am somewhat worried that Iran’s view of this deal appears different from what the American negotiating team claims,” Graham wrote in a post on X.