The United States and Iran have agreed to an immediate and permanent end to military operations on all fronts, including Lebanon. This brings a sudden halt to more than three months of conflict in the Middle East.
The announcement came Sunday from Pakistani Prime Minister Shehbaz Sharif, who'd been mediating the talks. Both Washington and Tehran quickly confirmed the deal, with a formal signing ceremony set for June 19 in Geneva.
"The Deal with the Islamic Republic of Iran is now complete," US President Donald Trump posted on social media as he marked his 80th birthday. He authorized the toll-free opening of the Strait of Hormuz and the immediate removal of the US naval blockade.
Iran's Deputy Foreign Minister Kazem Gharibabadi said in televised comments that the deal puts an "immediate end" to the war. Both sides will hold talks within two months to seek a "final agreement."
The breakthrough came after a rollercoaster Sunday. Earlier in the day, Trump had angrily blamed Israel for delaying the deal after an Israeli airstrike on Hezbollah in Beirut's suburbs. In an expletive-laden interview with Axios, Trump said he was "so pissed off" at Israeli Prime Minister Benjamin Netanyahu and let him know.
Tehran had long demanded that any ceasefire must include the parallel conflict in Lebanon, where Israel has been fighting Iran-backed Hezbollah. The Beirut strike threatened to derail the agreement, but by evening, the mediators had secured the deal.
The war began in late February with US-Israeli strikes on Iran. It's caused massive economic disruption worldwide, especially after the US blockaded the Strait of Hormuz — a chokepoint for about a fifth of global oil supply.
Oil prices crashed more than four percent on Monday. West Texas Intermediate approached $80 a barrel for the first time since March, while Brent crude fell to around $83.60. Both contracts had surged past $110 when the conflict started.
The drop in oil costs soothed fears that soaring inflation could force central banks to hike interest rates again. Japan's Nikkei stock index jumped three percent on the news.
"What we're going to be able to do is drive down the cost of energy, not just now but for the long term, and create a real engine of prosperity in the Middle East," US Vice President JD Vance told Fox News. He plans to attend the signing in Geneva and said Trump might also go.
The full content of the agreement remains unclear. Iran's Mehr news agency reported that the US will release $12 billion in frozen Iranian assets before negotiations start. It quoted a 14-point "memorandum of understanding" that stipulates the release of $24 billion during a 60-day negotiation period after the MoU is signed.
The Trump administration didn't immediately comment on those details, which could prove contentious as the US pushes to end Iran's nuclear ambitions. Iran's stockpile of highly enriched uranium is believed to have been buried by US strikes last year.
UN Secretary-General Antonio Guterres called the deal a "critical step" toward resolving the Middle East war. The UK, France, Germany, and Italy said they are prepared to lift sanctions on Iran and will work with all parties to achieve a long-term diplomatic settlement.
The deal also brings relief to global supply chains that were choked by the blockade. Fertilizer shipments, crucial for food production in Africa and beyond, had been disrupted for months.
- The war lasted over three months, starting late February 2026.
- Oil prices crashed over 4% on Monday, with Brent below $84.
- $12-$24 billion in frozen Iranian assets may be released.
- Strait of Hormuz blockade lifted, freeing global oil supply.
- Formal signing ceremony set for June 19 in Geneva.