US and Iran Reach Deal to End War, Lifting Naval Blockade as Israel Rejects Lebanon Ceasefire

The United States and Iran have reached a landmark memorandum of understanding to end their nearly four-month war, prompting President Donald Trump to authorize the immediate lifting of the US naval blockade and the reopening of the Strait of Hormuz.[1][2]

The agreement, brokered with the mediation of Pakistani Prime Minister Shehbaz Sharif, was signed electronically on Sunday by Trump, Vice President JD Vance, and Iranian Parliament Speaker Mohammad Bagher Ghalibaf. A formal signing ceremony is scheduled for Friday, June 19, in Geneva, Switzerland.[1][4]

The diplomatic breakthrough immediately rippled through global markets. Oil futures dropped 4% and equities rallied as the prospect of restored commercial shipping through the world's most critical energy chokepoint became a reality. Trump celebrated the deal on social media, declaring the conflict over and telling the global shipping industry to "start your engines."[1][4]

The US naval blockade, imposed in mid-April following the collapse of earlier ceasefire talks, had severely restricted Iranian oil exports and triggered retaliatory closures of the Strait. While the blockade is officially lifted, US officials cautioned that clearing mines and restoring full commercial traffic could take up to 30 days, depending on the risk tolerance of individual shipping companies.[6]

Domestically, the Trump administration is framing the deal as a permanent victory over Iran's nuclear ambitions. Vice President Vance touted a "two-step verification process" that will allegedly see international inspectors return to Iranian facilities, claiming the agreement will "fundamentally transform the Middle East."[4][5]

However, a major geopolitical fault line emerged immediately regarding the deal's scope. While the agreement reportedly mandates the cessation of military operations on all fronts—including the ongoing conflict in Lebanon—Israel swiftly rejected that provision.[1][5]

In his first press conference following the announcement, Israeli Prime Minister Benjamin Netanyahu declared that Israel is not a party to the US-Iran pact and is not bound by its terms. Netanyahu vowed that Israeli forces would remain in newly established "security buffer zones" in southern Lebanon, Gaza, and Syria indefinitely, insisting the occupations are necessary to protect Israeli citizens.[5][7]

The rift exposes growing daylight between Washington and its closest Middle East ally. Israeli far-right ministers, including National Security Minister Itamar Ben Gvir and Finance Minister Bezalel Smotrich, fiercely criticized the agreement, demanding the complete dismantling of Hezbollah rather than a negotiated ceasefire.[3][8]

Despite the Israeli pushback, regional actors and European allies largely welcomed the de-escalation. UK Prime Minister Keir Starmer called the restoration of navigation in the Strait of Hormuz "hugely important," while Hezbollah indicated it would respect the comprehensive ceasefire provided Lebanon's sovereignty is maintained.[3][5]

As diplomats prepare for Friday's formal signing, the next 60 days will involve intense technical negotiations to finalize the nuclear verification protocols. The success of the broader peace framework now hinges on whether the US can manage the fragile, contested reality on the ground in Lebanon while ensuring the safe flow of global energy.[2][4]