US–Iran deal halts war, to reopen Hormuz

The United States and Iran have reached a memorandum of understanding for a peace deal that halts their conflict and sets terms for further negotiations. Pakistan’s prime minister Shehbaz Sharif announced on June 14 on social media that a peace deal between the United States and the Islamic Republic of Iran has been reached. Iran’s Supreme National Security Council said the agreement provides for an immediate end to military operations on all fronts, including Lebanon.

Iranian officials described the understanding as putting an immediate end to the war with the United States. Both sides are reported to have agreed that hostilities should cease at once, including regional theatres linked to the conflict. The memorandum is framed as a first step toward a broader peace agreement that will be the subject of follow‑up talks.

The framework adopted by the parties establishes a 60‑day window for negotiations over Iran’s nuclear program and related issues. Iran’s Supreme National Security Council said the text of a cease-fire memorandum had been finalized as part of this arrangement. Negotiations during this period are intended to build on the initial cease-fire and address remaining political and security questions.

The agreement leaves key nuclear issues and implementation details to the upcoming talks. Officials have indicated that follow‑up negotiations will seek to translate the cease-fire memorandum into a more comprehensive peace accord. For now, the central operational provisions are the halt to military operations and changes to the status of the Strait of Hormuz.

The memorandum of understanding calls for reopening the Strait of Hormuz under Iranian arrangements. Iranian state media reported that the strait would reopen within 30 days under these terms. The agreement also includes an immediate end to the U.S. naval blockade on Iran.

President Donald Trump wrote on his social media platform that the deal would allow “toll free” passage of ships through the Strait of Hormuz and ordered the naval blockade lifted. He urged commercial shipping to “start your engines,” signaling that traffic through the waterway should resume as the agreement takes effect. The reopening of the strait is a central economic element of the peace framework.

An official signing ceremony for the deal is reported to be scheduled for Friday, June 19, in Switzerland. This ceremony is intended to formalize the memorandum reached between the United States and Iran. Further negotiations toward a broader peace agreement are to begin after the signing.

Iran’s Supreme National Security Council thanked Pakistan and Qatar for mediating the talks that led to the memorandum. Pakistan’s role was highlighted by its prime minister’s public announcement of the agreement. The mediation efforts helped produce a document that both sides were prepared to endorse ahead of the planned signing date.

Financial markets reacted quickly to news of the peace framework and the planned reopening of the Strait of Hormuz. Oil prices fell and stocks rose on Sunday as investors reassessed the outlook for energy supplies and regional risk. Reports cited U.S. crude futures for July around $85 per barrel and Brent (UKOIL) around $87 per barrel after the announcement.

Equity markets also moved higher as traders anticipated reduced geopolitical tensions and a restoration of shipping flows through the Gulf. Currency and commodity markets responded in parallel to the shift in risk sentiment linked to the U.S.–Iran deal. The combination of a cease-fire, a defined negotiation window, and the expected reopening of Hormuz has become a key focus for global investors.