The United States and Iran have reached a peace agreement to end the nearly four-month war and reopen the Strait of Hormuz, one of the world’s most important routes for oil and natural gas trade. The announcement was made this Sunday (14) by the Prime Minister of Pakistan, Shehbaz Sharif, and subsequently confirmed by the American President, Donald Trump, and Iranian authorities.
Pakistan acted as a mediator in negotiations between Washington and Tehran. According to Sharif, the two countries agreed to the “immediate and permanent” end of military operations on all fronts, including Lebanon.
“After intense negotiations, we are pleased to announce that the Peace Agreement between the United States of America and the Islamic Republic of Iran has been reached,” wrote the Pakistani Prime Minister on the social network X.
The official signing ceremony is scheduled for Friday, June 19, in Switzerland, according to Sharif. Iran’s Deputy Foreign Minister Kazem Gharibabadi also confirmed the agreement in an interview with Iranian state TV and stated that the text of the memorandum of understanding will be released after the formal signing.
Trump confirms agreement and authorizes opening of Hormuz
Trump confirmed the agreement shortly after the Pakistani prime minister’s announcement. In a post on social media, the US president stated that the understanding with Tehran “is now concluded”.
“I fully authorize the free opening of the Strait of Hormuz and simultaneously authorize the immediate removal of the naval blockade of the United States,” Trump wrote.
Iranian state media also reported the deal, although it portrayed the outcome as a US capitulation. Despite public declarations of victory by both sides, the official text has not yet been published, and relevant details remain unclear.
What the agreement provides
Although the final terms have not yet been released, the general outlines of the agreement have been circulating in recent days, according to Bloomberg e CNBC.
According to the preliminary understanding, the United States and Iran must end competing blockades in the Strait of Hormuz, stop mutual attacks and begin a new round of negotiations on Iran’s nuclear program. The agreement should also provide for some type of relief from sanctions affecting Iran’s oil exports.
Iranian state media had reported on Friday that a 14-page draft memorandum was under discussion. The document would include the lifting of US oil sanctions and an Iranian commitment to reopen the Strait of Hormuz within 30 days.
Economic incentives for Tehran are also under discussion. According to Bloomberga senior US official said the parties were evaluating a model in which Iran would receive economic rewards as it complied with certain American demands. Tehran, for its part, is also seeking access to billions of dollars in resources frozen abroad and longer-lasting sanctions relief.
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Crucial route for oil and gas
The Strait of Hormuz has remained effectively closed since the conflict began at the end of February. The passage is considered one of the most strategic maritime routes in the world, through which about a fifth of the global supply of oil and liquefied natural gas normally passes.
The road blockage affected the flow of essential products, such as oil, natural gas and fertilizers, put pressure on supply chains and contributed to rising energy prices. The shock reignited fears of stagflation, a scenario marked by high inflation and weak economic growth.
The effects are already appearing in indicators of large economies. In the United States, annual inflation reached 4.2% in May, the highest level in three years, according to CNBC. In Europe, the European Central Bank raised interest rates for the first time since 2023, in response to the persistence of inflationary pressures linked to the energy shock.
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US Vice President JD Vance told Fox News that the agreement represents “something great for the American people” and said the reopening of Hormuz should help reduce the cost of energy in the short and long term.
Distrust still weighs on next steps
The agreement comes after weeks of mixed signals between Washington and Tehran and amid a fragile ceasefire. Since early April, the two countries had been holding indirect negotiations, but intermittent clashes threatened to upend diplomatic efforts.
The situation became tense again this Sunday, after Israel and Hezbollah, a group supported by Iran, exchanged attacks in Lebanon. Israeli bombings in Beirut provoked a reaction from Trump, who called for moderation and warned Iran and Hezbollah not to counterattack. According to CNBCTrump asked the sides involved not to “screw it up.”
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Israel’s position remains one of the main uncertainties for the implementation of the agreement. Prime Minister Benjamin Netanyahu’s government had already put a last-minute signature at risk by carrying out new attacks in Lebanon.
In the US, Trump may also face resistance from sectors that are tougher on Iran, who fear that the agreement leaves issues such as Iran’s nuclear program and the development of ballistic missiles in the background. These points were at the center of American justifications for the start of the conflict.
Still, the announcement tends to reduce, at least in the short term, the risk of an immediate resumption of war and alleviate some of the pressure on global energy markets. The question now is whether the formal signing of the agreement and subsequent negotiations will be enough to transform the ceasefire into a more lasting arrangement.
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(Com Bloomberg, CNBC e Reuters)
