WASHINGTON: In a dramatic geopolitical development with far-reaching implications for global energy markets and Middle East security, US President Donald Trump announced the completion of a peace agreement with Iran, declaring the reopening of the strategic Strait of Hormuz and the lifting of a US naval blockade in the region. The announcement, made through Trump's Truth Social platform and subsequent remarks during diplomatic engagements in Europe, signals what Washington and Tehran are describing as the end of months of military confrontation and the beginning of a tentative political reset between two long-standing adversaries.
Trump said the agreement with Iran was "now complete", adding that maritime traffic through the Strait of Hormuz would resume immediately. "Ships of the world, start your engines. Let the oil flow!" he wrote, framing the development as both a diplomatic and economic turning point. He also confirmed the immediate removal of a United States naval blockade of the strait, one of the world's most critical oil transit chokepoints. He further claimed that vessels carrying crude oil were already beginning to move out of the Gulf region, although independent maritime tracking data suggested shipping activity remained limited.
Earlier, Prime Minister Shehbaz Sharif said that Washington and Tehran had reached a peace deal following "intensive talks", crediting the Pakistani-mediated diplomatic process aimed at ending hostilities and stabilising regional maritime routes. The official full text details of the deal has not yet been released but according to the reported framework, it includes termination of military operations across multiple theatres, including Lebanon, alongside provisions relating to Iran's nuclear programme and phased reopening of traffic in the Strait of Hormuz.
Trump said the agreement had already been signed electronically by US Vice President JD Vance and senior Iranian negotiator Mohammad Bagher Qalibaf, with a formal ceremony planned in Switzerland on June 19. He added that the document would be made public after the signing, describing it as a "very powerful document".
In Iran, President Masoud Pezeshkian described the agreement as a potentially historic moment that could reshape regional politics if fully implemented. Speaking in Tehran, he said the accord could become "a source of national pride" and stressed that more than 90% of the Supreme National Security Council had supported it. Iranian Foreign Minister Abbas Araghchi, meanwhile, indicated that the deal could create economic opportunities but cautioned against over-reliance on US commitments, pointing to past breakdowns in agreements and longstanding distrust between Tehran and Washington dating back to the 1953 coup.
Iranian officials also suggested that implementation would be closely monitored and conditional on reciprocal actions, including access to frozen Iranian funds and guarantees on maritime security. Foreign Ministry spokesperson Esmaeil Baghaei said Tehran remained sceptical, citing historical grievances but acknowledging that "regional visits" and implementation mechanisms were under discussion.
The Strait of Hormuz, through which roughly a fifth of global oil supply passes, has been a central flashpoint in recent tensions. Despite Trump's claim that shipping was resuming, maritime tracking firms reported that commercial traffic remained significantly below normal levels, with only limited vessels recorded in transit.
European leaders responded cautiously, stating they were prepared to lift sanctions on Iran if Tehran took "clear, verifiable steps" regarding its nuclear programme. They also reiterated that Iran must never acquire a nuclear weapon and called for the full reopening of the strait under international monitoring. Israel, however, signalled reservations, with its defence establishment indicating it would maintain positions in areas seized in Lebanon. Meanwhile, Hezbollah officials said the group had halted operations following the announcement, linking its stance to Israeli compliance with the terms of any ceasefire framework.
Despite competing narratives over timing and implementation, the agreement, if fully realised, would mark one of the most significant diplomatic breakthroughs in recent US-Iran relations. It also carries immediate implications for global oil prices, shipping security, and broader Middle East stability. Trump, speaking in France ahead of the G7 summit, hailed the development as evidence of a stronger negotiating posture with Tehran compared to previous US administrations. He criticised the 2015 nuclear agreement under Barack Obama, arguing it had failed to restrain Iran's nuclear ambitions. "We negotiated from strength," he said, while also hinting that broader regional changes could follow. However, he stopped short of guaranteeing long-term stability, acknowledging that the deal remained contingent on continued cooperation.
