US and Iranian officials have agreed on a framework to end their war, halt the US blockade of Iran, and reopen the Strait of Hormuz. This preliminary pact has sent oil prices falling but leaves the fate of Iran's nuclear program to further negotiations.
Trump Announces Deal
US President Donald Trump wrote on his Truth Social platform around 5:30pm ET on Sunday that the deal with the Islamic Republic of Iran is now complete. His post came shortly after Prime Minister Shehbaz Sharif, whose country has served as a mediator, announced a deal had been struck early on Monday local time. The memorandum of understanding is scheduled to be officially signed on Friday in Switzerland.
Key Provisions
Sharif stated in a post 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 confirmed that war and military operations on all fronts would end permanently starting Monday night.
Iranian media published details of a 14-point draft memorandum of understanding. The semi-official Mehr News Agency reported that the draft includes an immediate and permanent halt to the war on all fronts, lifting of the US naval blockade, reopening of the Strait of Hormuz, and a 60-day negotiation period covering nuclear issues and sanctions relief.
Oil Prices and Market Reaction
Trump stated that the Strait of Hormuz would open on Friday and that he ordered the end of the US blockade of Iranian ports. Oil prices fell on the news, with Brent crude futures dropping 4% and US West Texas Intermediate sliding more than 4.6%. Stock markets in Asia jumped.
Nuclear Program and Future Talks
The fate of Iran's nuclear program will be addressed in later talks during a 60-day ceasefire period. Iran's deputy foreign minister, Kazem Gharibabadi, said a more expansive agreement would be negotiated, including sanctions relief. The draft sets a 60-day negotiation period focused on nuclear issues and sanctions relief, with Iran reiterating its commitment under the NPT not to produce nuclear weapons.
Reactions
Former Biden administration State Department spokesperson Matthew Miller criticized the deal, saying Trump made important concessions to Iran. Republican Senator Lindsey Graham praised the deal but said he would watch the coming negotiations closely. Leaders from the UK, Germany, France, and Italy welcomed the announcement and said they were prepared to lift sanctions in response to verifiable steps to limit Iran's nuclear program.
