US and Iran Reach Preliminary Deal to End War and Reopen Strait of Hormuz

The United States and Iran have reached a preliminary peace agreement to end a devastating 107-day war that has rocked the global economy and destabilized the Middle East. Announced by US President Donald Trump and Pakistani Prime Minister Shehbaz Sharif, the deal centers on an immediate cessation of hostilities and the reopening of the Strait of Hormuz.[1][2][4]

The breakthrough, brokered primarily by Pakistan with assistance from Qatar, takes the form of a memorandum of understanding (MOU). While not a finalized treaty, the MOU is designed to halt military operations on all fronts, including the ongoing conflict in Lebanon between Israel and Hezbollah.[2][4][7]

A formal signing ceremony is tentatively scheduled for Friday, June 19, in Switzerland. However, the agreement is best understood as a framework that kicks off a critical 60-day window for technical negotiations, during which diplomats must resolve deeply entrenched disputes over Iran's nuclear program and long-term sanctions relief.[2][4][5]

The most immediate global impact of the agreement is the reopening of the Strait of Hormuz. The narrow waterway, which typically handles roughly 20% of the world's oil and liquefied natural gas supplies, has been effectively closed to commercial shipping since the war escalated in late February.[4][6]

President Trump announced the reopening on social media, declaring that he had authorized the immediate removal of the US naval blockade on Iranian ports. "Ships of the World, start your engines. Let the oil flow!" Trump wrote, signaling a priority on stabilizing global energy markets ahead of the US midterm elections.[3][4][6]

In exchange for reopening the strait, the US has agreed to lift its naval blockade and temporarily waive certain oil sanctions. This will allow Tehran to resume selling oil and generate much-needed revenue for its battered economy.[2][3]

Reports indicate the deal also includes the unfreezing of approximately $25 billion in Iranian assets. These funds would be released through direct cash transfers and financial credit lines facilitated by regional partners, providing immediate economic relief to the Islamic Republic.[7][8]

Despite the optimistic announcements from Washington and Islamabad, Iranian officials have signaled that a final decision has not yet been made. State media in Tehran reported that the political, legal, and technical aspects of the draft are still under review by experts and decision-makers.[7]

To bridge the remaining gaps, Qatari negotiators flew to Tehran on Sunday to meet with Iranian officials and finalize the text. The hesitation underscores the domestic political risks for Iran's leadership, who face pressure from hardliners to reject any concessions to the US.[4][7]

The most contentious issue remains Iran's nuclear program. Under the draft terms, Iran has reportedly agreed to maintain the current nuclear status quo—meaning no further uranium enrichment or expansion of nuclear facilities—until a final, comprehensive deal is reached at the end of the 60-day period.[2][8]

President Trump has claimed that the agreement ensures Iran will never attain a nuclear weapon, a commitment Tehran insists it has always held. Trump also suggested that the US would eventually acquire and destroy Iran's highly enriched uranium stockpile, referring to it as "Nuclear Dust" that would be neutralized by US forces.[6][7]

However, US and Iranian officials have offered conflicting accounts of how the stockpile will be handled. Some draft versions suggest Tehran will dilute its highly enriched uranium domestically, with the exact verification mechanisms to be negotiated during the 60-day technical talks.[2][7]

The agreement also notably sidelines Israel, which was not included in the negotiations. The US and Israel initiated the war in February 2026 with large-scale strikes aimed at destroying Iran's nuclear and missile infrastructure, a campaign that resulted in the death of Supreme Leader Ali Khamenei.[3][7]

Israeli officials and security experts have expressed deep skepticism about the emerging deal. Critics within the Israeli defense establishment view the ceasefire as a mistake that leaves Iran's nuclear infrastructure largely intact while providing the regime with a financial lifeline.[4]

The inclusion of a ceasefire in Lebanon is a critical component for Iran, which has sought to protect its ally Hezbollah from ongoing Israeli military operations. Pakistani PM Sharif explicitly noted that the termination of military operations applies to the Lebanese front, though it remains unclear how the US will enforce this given Israel's independent military objectives.[4][5][7]

If the MOU holds, it will mark a significant de-escalation in a conflict that has drawn in multiple regional actors and disrupted global supply chains. However, analysts warn that the 60-day negotiation period will be fraught with challenges, as both sides attempt to translate a fragile truce into a durable geopolitical settlement.[2][4]