American and Iranian officials announced Sunday that they have reached a preliminary agreement to end their war and restore access to the Strait of Hormuz, a critical waterway for global oil and gas shipments that Iran has effectively shut down for months. While the deal is still a framework, it represents the most significant step yet toward resolving a conflict that has claimed thousands of lives and rattled energy markets since U.S. and Israeli forces first struck Iran back in February.
U.S. President Donald Trump announced the news on his Truth Social platform around 5:30 p.m. Washington time on Sunday. “The Deal with the Islamic Republic of Iran is now complete,” he wrote. His post followed a separate announcement from Pakistani Prime Minister Shehbaz Sharif — whose country served as a mediator — who confirmed a deal had been reached early Monday local time.
The formal signing of the memorandum of understanding is scheduled for Friday in Switzerland. The full terms of the agreement were not immediately made public.
Sharif stated on X that the pact calls for “the immediate and permanent termination of military operations on all fronts, including in Lebanon.” Iran’s Supreme National Security Council secretariat echoed that, saying all military operations — including those in Lebanon — would permanently cease beginning Monday night.
Lebanon has been a sticking point throughout negotiations, with Israel and Hezbollah continuing to exchange attacks despite calls from Trump and others to stand down. Iran’s deputy foreign minister, Kazem Gharibabadi, said a broader agreement would be worked out during a 60-day ceasefire window, which would also include the possibility of sanctions relief for Iran. The future of Iran’s nuclear program — another deeply contentious issue — is also expected to be part of those upcoming discussions, according to sources who previously spoke with Reuters.
Israel, which has maintained it was not part of the U.S.-Iran talks, had not publicly responded to the announcement at the time of this report.
Trump said the Strait of Hormuz would reopen by Friday and confirmed he had ordered an end to the U.S. blockade of Iranian ports. “Ships of the World, start your engines. Let the oil flow!” he wrote.
Markets responded quickly. Brent crude futures dropped 4% in early Monday trading, while Asian stock markets surged. “The lack of details especially on freedom of shipping is a concern but not one that should constrain markets today as the surge in risk appetite plays out,” said Sean Callow, a senior FX analyst at ITC Markets.
Former State Department spokesperson Matthew Miller, who served under the Biden administration, argued that Trump had made meaningful concessions to Iran just to return to the situation that existed before the war began. “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,” Miller said.
The conflict, which began when U.S. and Israeli forces attacked Iran on February 28, has resulted in thousands of deaths — mostly in Iran and Lebanon. Iran has struck Israel and Gulf states that host U.S. military bases, while also blockading the Strait of Hormuz and driving up global energy costs. American forces responded by blockading Iranian ports.
The war has become a growing political problem for Trump and Republican members of Congress, with polls showing Americans increasingly frustrated by climbing gas prices ahead of November’s midterm elections. At the same time, Trump has faced pressure from within his own party to ensure Iran’s nuclear program is fully dismantled.
Republican Senator Lindsey Graham, a prominent advocate for a tough stance on Iran, offered cautious praise for the deal. “Under our law, any nuclear deal with Iran will be sent to Congress for review and a vote,” he said. “Congratulations to all in getting us to this point.” Graham added that he would be “watching closely” the upcoming negotiations over Iran’s nuclear capabilities.
During his first term, Trump withdrew the U.S. from a 2015 multilateral agreement — negotiated under Democratic President Barack Obama — that had lifted sanctions on Iran in exchange for limits on its nuclear activities, including international inspections. In the years since, Iran has significantly increased its uranium enrichment, producing more than 400 kilograms — roughly 900 pounds — of material at close to weapons-grade purity. The fate of that stockpile is expected to be a central issue in the next phase of talks.
The deal was finalized even as Israel carried out a strike on Lebanon on Sunday, drawing condemnation from both Iran and Trump. Israeli Prime Minister Benjamin Netanyahu has clashed with Trump over U.S. demands that Israel scale back its military activity in Lebanon to allow the Iran negotiations to move forward. Israel has insisted it will maintain freedom to operate in Lebanon, while Iran has demanded a full ceasefire there as a core condition.
Trump spoke with Netanyahu by phone on Sunday to update him on the progress toward a peace deal, according to Israel’s N12 news outlet, citing a senior official. In a separate interview with the New York Times, Trump described Netanyahu as “a very difficult guy” and suggested the Israeli leader should be grateful to him for protecting Israel from a nuclear-armed Iran.
World leaders outside the region welcomed the news. Britain, Germany, France, and Italy issued a joint statement saying they were ready to lift sanctions on Iran in response to “clear, verifiable steps” to limit its nuclear program. British Prime Minister Keir Starmer said, “We are clear that toll-free freedom of navigation must now be restored in the Strait of Hormuz. Iran must never have a nuclear weapon.”
Before the deal was publicly announced, a senior Iranian official told Reuters that under the draft terms, the U.S. would agree to release $25 billion in frozen Iranian assets — though the Trump administration had previously said any such release would only happen once Iran met specific conditions. A U.S. official, also speaking before the announcement, said the agreement would ultimately lead to the dismantling of Iran’s nuclear program, with its stockpile of highly enriched uranium to be destroyed and removed. The Iranian official, however, said the draft would allow Iran — which denies pursuing a nuclear weapon — to dilute its enriched uranium within its own borders.
