‘Now complete’: US Iran set to sign peace deal on Friday, Strait of Hormuz to open

US-Iran war: An Iran-US peace deal is set to be signed on Friday in Switzerland after officials from both countries agreed on a framework to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz. The preliminary agreement caused oil prices to fall but left the future of Iran’s nuclear programme to further negotiations.

US President Donald Trump announced the deal on Truth Social, stating, “The Deal with the Islamic Republic of Iran is now complete.” Pakistani Prime Minister Shehbaz Sharif, whose country acted as a mediator, confirmed the agreement early Monday local time. 

The exact terms of the deal were not immediately disclosed. Sharif mentioned on X that the pact includes “the immediate and permanent termination of military operations on all fronts, including in Lebanon.” Iran’s Supreme National Security Council stated that war and military actions on all fronts would end permanently from Monday night.

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Lebanon has been a major issue in the talks, with Israel and Hezbollah continuing attacks despite calls to stop. Israel has not responded to the announcement and said it was not part of the US-Iran negotiations.

Trump said the Strait of Hormuz, a key shipping route for global oil and gas that Iran had effectively closed for months, would reopen. He also ordered an end to the US blockade of Iranian ports, urging, “Ships of the World, start your engines. Let the oil flow!”

Following the announcement, Brent crude futures fell by 4 per cent and US West Texas Intermediate dropped over 4.6 per cent. Asian stock markets rose.

Former Biden administration spokesperson Matthew Miller noted that Trump made significant concessions to restore the pre-war status quo but expressed concerns that the nuclear programme might not be addressed. He said Iran demonstrated it could impact the global economy to gain concessions from the US.

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Iran’s deputy foreign minister Kazem Gharibabadi said a broader agreement would be negotiated during a 60-day ceasefire, including sanctions relief. Earlier reports indicated that Iran’s nuclear programme would be discussed in these later talks.

The agreement was reached despite an Israeli strike on Lebanon on Sunday, which drew criticism from Iran and Trump. Israeli Prime Minister Benjamin Netanyahu has disagreed with Trump over demands to curb military action in Lebanon. Israel insists it will maintain freedom of operations there, while Iran demands a full ceasefire.

Trump updated Netanyahu on the peace deal progress during a phone call on Sunday. Trump described Netanyahu as “a very difficult guy” but said the Israeli leader should thank him for preventing a nuclear-armed Iran.

Before the announcement, a senior Iranian official said the draft terms include the US releasing 25 billion dollars of frozen Iranian assets. A US official said the agreement would lead to dismantling Iran’s nuclear programme, destroying and removing its stockpile of highly enriched uranium. Iran denies seeking a nuclear bomb and would be allowed to dilute enriched uranium domestically.

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Meanwhile, the E4 nations — the UK, France, Germany and Italy — stated they are ready to lift sanctions in response to steps on Iran’s nuclear programme following the US-Iran deal. They emphasised that Iran must never acquire a nuclear weapon and expressed readiness to work with the US, Iran and the IAEA.