The war between the US and Iran is over — at least on paper.
On Sunday evening, US President Donald Trump announced on Truth Social that a deal with Iran was "now complete." Pakistani Prime Minister Shehbaz Sharif, who mediated the talks, confirmed early Monday that a memorandum of understanding had been struck. The official signing is set for Friday in Switzerland.
The agreement calls for an immediate and permanent end to military operations on all fronts, including in Lebanon — a major sticking point in negotiations. Israel and Hezbollah have been trading fire despite calls from Trump and others to stop. Iran's Supreme National Security Council said fighting would end permanently starting Monday night.
Trump also declared that the Strait of Hormuz — a vital shipping route for global oil and gas that Iran effectively shut down for months — would reopen on Friday. He ordered an end to the US blockade of Iranian ports. "Ships of the World, start your engines. Let the oil flow!" Trump wrote.
Oil prices reacted immediately. Brent crude fell 4% in early Monday trading, while US West Texas Intermediate dropped more than 4.6%. Asian stock markets jumped.
The war began on February 28 when US and Israeli forces first attacked Iran. Since then, thousands have been killed, mostly in Iran and Lebanon. Iran struck Israel and Gulf states hosting US bases, and blockaded the Strait of Hormuz, pushing up global energy prices. The US responded by blocking Iranian ports.
At home, the war had become a political liability for Trump and fellow Republicans ahead of November's midterm elections. Polls showed Americans deeply frustrated by rising gas prices. But Trump also faced pressure from Republican hawks who insisted Iran's nuclear program must be dismantled.
"We have no assurances the nuclear program will ever be addressed, but Iran has shown the world it can take the global economy hostage and get something from the U.S. in return," said Matthew Miller, a former State Department spokesperson under President Joe Biden.
The precise terms of the deal aren't yet public. Iran's deputy foreign minister, Kazem Gharibabadi, said a more expansive agreement — including sanctions relief and the fate of Iran's nuclear program — would be negotiated during a 60-day ceasefire period.
The nuclear issue is especially thorny. During his first term, Trump withdrew the US from the 2015 multilateral Iran deal negotiated by Barack Obama, which lifted sanctions in exchange for limits on Iran's nuclear program. Iran responded by ramping up enrichment, producing more than 400 kg (about 900 pounds) of uranium at near bomb-grade purity. What happens to that uranium will be a key point in the upcoming talks.
Republican Senator Lindsey Graham, a leading Iran hawk, praised the deal but said he'd be "watching closely" the nuclear negotiations. "Under our law, any nuclear deal with Iran will be sent to Congress for review and a vote," he said.
Israel hasn't reacted publicly to the announcement. Prime Minister Benjamin Netanyahu has clashed with Trump over US demands that Israel curb military action in Lebanon to allow the US-Iran deal to move forward. Israel has insisted it'll retain freedom of operations in Lebanon, while Iran made a full ceasefire there a key demand.
Trump updated Netanyahu on the peace deal during a phone call on Sunday, according to Israel's N12 news. In an interview with the New York Times, Trump called Netanyahu "a very difficult guy" and argued the Israeli leader should thank him for saving Israel from a nuclear-armed Iran.