The United States and Iran announced a framework agreement to end the conflict that has been ongoing for more than three months, with both sides confirming that a formal memorandum of understanding is expected to be signed in Switzerland on Friday, June 19.
The Associated Press news agency reported that the proposed agreement includes ending military operations, reopening the Strait of Hormuz, and lifting the US naval blockade, while leaving the Iranian nuclear program to future negotiations.
Pakistan, which played the role of mediator, announced that the two countries had reached an understanding calling for “the immediate and permanent cessation of military operations on all fronts, including in Lebanon.”
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The exact text of the agreement has not yet been announced, and is expected to be released only after the official signing.
Trump announces the completion of the deal
US President Donald Trump announced the milestone on his Social Truth platform, saying: “The agreement with the Islamic Republic of Iran is now complete. Congratulations everyone! I hereby fully authorize the free opening of the Strait of Hormuz, and at the same time, I authorize the immediate removal of the US naval blockade. Ships of the world, start your engines. Let the oil flow! President Donald Trump.”
In a separate statement, Trump called the agreement a historic achievement and said: “This great deal will bring peace and security to the entire region. Many presidents have tried to make peace with Iran, and all of them failed before me. The leaders of the region have found, for the first time, a president who can help them achieve true peace. With the opening of the Strait when the deal is signed on Friday, for de-mining purposes, oil will flow on both sides once again to the region and the world! President Donald J. Trump.”
Iran confirms the agreement but sets conditions for future talks
Iranian Deputy Foreign Minister for Legal and International Affairs Kazem Gharibabadi confirmed the agreement and said that Tehran would not enter into a proposed 60-day negotiation period except after verifying Washington’s fulfillment of its obligations.
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According to the Iranian state-run Press TV, he said: “The enemy that launched an attack to carry out its evil goals was defeated in all its goals, and the Islamic Republic of Iran achieved great victories in the war. The memorandum of understanding was not just a product of diplomacy, but it is indebted to Iran’s military achievements. It is indebted to the pure blood of the martyrs that we offered in the face of the enemies of the establishment.” The memorandum of understanding will be published on Friday, will be formally signed, and the heads of the two delegations will hold discussions to determine future arrangements for negotiations.
He added, “Entering into negotiations for a period of 60 days is conditional on the United States fulfilling these commitments.”
Reopening of the Strait of Hormuz
One of the most important elements of the agreement is the reopening of the Strait of Hormuz, a critical global energy route. American and Iranian officials said that they agreed on a framework to end the war, stop the American blockade on Iran, and reopen the waterway.
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However, implementation is not expected until after the official signing of the agreement on Friday.
The nuclear issue will be discussed separately
Although the framework addresses conflict and blockade, the future of Iran’s nuclear program remains unresolved and will be negotiated separately.
Trump told the New York Times that if Iran fails to reach a final nuclear agreement with the United States, he will resume military attacks on Tehran or make the United States the “guardian of the Middle East” in exchange for 20% of the region’s revenues.
Lebanon remains part of the agreement
Pakistan said that the understanding includes “an immediate and permanent end to military operations on all fronts, including in Lebanon.”
Lebanon emerged as a major sticking point during the negotiations, as Israel and Hezbollah continued their attacks despite repeated calls for restraint. The General Secretariat of Iran’s Supreme National Security Council later announced that the war and military operations on all fronts, including Lebanon, would end permanently as of Monday night.
There was no immediate reaction from Israel, which confirmed that it was not part of the US-Iranian negotiations.
Markets react positively
Financial markets responded quickly to this announcement. Oil prices fell sharply after news of the agreement, reflecting expectations that energy supplies could stabilize if the Strait of Hormuz is reopened.
Reuters news agency reported that US benchmark West Texas Intermediate crude fell by 4.70 percent to $80.89 per barrel, while Brent crude fell by 4.03 percent to $83.81.
Asian stock markets also rose. Japan’s Nikkei 225 rose 4.99 percent, while South Korea’s Kospi rose 5.54 percent.
Meanwhile, the US dollar fell to a 10-day low against major currencies as investors shifted towards riskier assets. The dollar index fell 0.31 percent to 99.492, while the euro, British pound, Australian dollar, and New Zealand dollar all strengthened.
European powers express their readiness to lift sanctions
The United Kingdom, France, Germany and Italy welcomed the agreement and said they were ready to ease sanctions on Iran if there were verifiable steps regarding its nuclear program.
Their joint statement said: “We stand ready to lift relevant sanctions in response to clear, verifiable steps by Iran regarding its nuclear program. We will work intensively with the United States, Iran, and regional partners to seize this moment, maintain momentum, and achieve a long-term diplomatic settlement.”
He added: “Iran must never obtain a nuclear weapon. We are ready to work with the United States, Iran and the International Atomic Energy Agency to achieve this goal.”
(With inputs from agencies)
