US and Iran Reach Agreement to End War and Reopen the Strait of Hormuz

The United States and Iran have reached a sweeping memorandum of understanding (MOU) to end the military conflict that began in late February, signaling a dramatic de-escalation in the Middle East. The agreement mandates an immediate and permanent termination of military operations on all fronts, the lifting of the US naval blockade on Iranian ports, and the reopening of the Strait of Hormuz to commercial shipping.[1][5]

President Donald Trump announced the breakthrough on his Truth Social platform, declaring the deal "complete" and authorizing the immediate removal of the US naval blockade. "I hereby fully authorize the toll-free opening of the Strait of Hormuz," Trump wrote. "Ships of the World, start your engines. Let the oil flow!"[4][8]

The framework was signed digitally on Sunday by US and Iranian officials, with an in-person signing ceremony scheduled for Friday, June 19, in Geneva, Switzerland. The diplomatic breakthrough was heavily mediated by Pakistan and Qatar, with Pakistani Prime Minister Shehbaz Sharif first announcing that both sides had agreed to end hostilities, including the ongoing conflict in Lebanon.[3][6]

Iran's Supreme National Security Council confirmed the finalization of the text, issuing a statement that military operations across multiple fronts are ended "immediately and permanently." The council also confirmed that the US naval blockade against Iran is terminated, allowing the country to resume maritime trade.[4][6]

The immediate economic relief was felt globally, as oil prices fell roughly 5 percent following the announcement. The Strait of Hormuz, a critical maritime chokepoint through which a fifth of the world's oil and natural gas passes, had been effectively closed by Iran since the war began, prompting the US to launch a retaliatory blockade in the Gulf of Oman.[1][5][7]

While Trump proclaimed the strait open immediately, maritime and energy experts caution that the physical resumption of shipping will take time. Iranian state media reported that the reopening will take place "under Iranian arrangements" over the next 30 days, as the waterway must first be cleared of naval mines deployed during the conflict.[7]

The MOU serves as a preliminary framework rather than a comprehensive treaty. It establishes a 60-day ceasefire period during which negotiators will tackle the conflict's core drivers: Iran's nuclear program and the complex web of Western sanctions crippling the Iranian economy. US officials have indicated that the US may abandon its previous requirement that all Iranian uranium stockpiles be exported, instead exploring options to down-blend highly enriched uranium inside Iran.[2][5]

However, the deal's parameters have already sparked fierce debate regarding what was left out. The agreement contains no restrictions on Iran's ballistic missile program, nor does it require Tehran to rein in its proxy forces, including Hamas, the Houthis, and Hezbollah. The omission of these demands—long sought by Israel—marks a significant shift from the pre-war status quo.[2]

The concessions have triggered a political firestorm in Israel. Israeli opposition leader Yair Lapid called for Prime Minister Benjamin Netanyahu to resign, arguing that Netanyahu mishandled diplomacy with Washington and allowed a deal that leaves Israel vulnerable. "The State of Israel won the battle, Netanyahu lost the war," Lapid stated, accusing the Prime Minister of collapsing at the moment of truth.[1]

In Lebanon, Hezbollah credited Iran with securing a "major achievement," suggesting the deal could lead to the liberation of Lebanese territory currently occupied by Israeli forces. However, with Israel not a direct party to the US-Iran MOU, analysts warn that localized skirmishes between the Israel Defense Forces and Hezbollah could still threaten the broader peace framework.[2]

A significant point of contention remains the unfreezing of Iranian assets. Iranian semi-official media reported that the agreement includes the immediate release of $12 billion—half of Iran's frozen overseas funds—before further negotiations begin. US Vice President JD Vance explicitly denied this on Monday, stating that while the deal was signed digitally, "there's been no money released and that won't change."[1][6]

Despite the friction, the international community has largely embraced the de-escalation. A joint statement from the leaders of the UK, France, Germany, Italy, and Canada welcomed the diplomatic breakthrough as a "moment of opportunity to restore regional stability and stabilise the global economy," urging all parties to ensure the unconditional freedom of navigation through the Strait of Hormuz.[3]

As delegations prepare to meet in Geneva on Friday, the focus shifts to the fragile 60-day window. Negotiators must now translate a temporary halt in hostilities into a durable architecture that addresses Iran's nuclear ambitions, unwinds layers of international sanctions, and prevents the Middle East from sliding back into open warfare.[2][5]