Trump Announces Iran Ceasefire Deal as Strait of Hormuz Reopens

The United States and Iran have reached an agreement to end more than three months of war, with President Donald Trump announcing Sunday that the Strait of Hormuz will reopen and the American naval blockade will be immediately lifted.

Pakistani Prime Minister Shehbaz Sharif confirmed the breakthrough, saying both sides had declared “the immediate and permanent termination of military operations on all fronts, including in Lebanon.” A formal signing ceremony is set for Friday, June 19, in Switzerland.

Trump shared the news on Truth Social, writing: “The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!” In a follow-up post, Trump clarified that the strait would officially reopen upon the deal’s signing on Friday.

Iran’s Supreme National Security Council said the deal was reached “following a difficult and intensive period of negotiations lasting several months.”

The conflict began on February 28 with the assassination of Supreme Leader Ayatollah Ali Khamenei and a series of U.S.-Israeli strikes across Iran. A ceasefire was agreed in April to allow for negotiations, though both sides continued with some strikes amid a dispute over the Strait of Hormuz, a vital trade route through which roughly 20% of the world’s oil passed before the war. The latest agreement is intended to bring that dispute to a permanent close.

What the Deal Covers

Trump said the agreement will ensure that the Strait of Hormuz is “permanently toll free” and that the U.S. naval blockade on Iranian ports will be lifted. The full text of the deal has not yet been publicly released, but key outlines have emerged from both Washington and Tehran. The memorandum of understanding marks the war’s biggest diplomatic breakthrough and is designed to buy time for negotiations over unresolved nuclear questions.

Iranian state media reported last Friday that a 14-page draft memorandum had been circulated, with the signing expected to open 60 days of additional talks on Iran’s nuclear program.

However, the two sides are already giving conflicting signals on what those talks will involve. Iran’s deputy foreign minister said the 60-day nuclear negotiations will begin only once the U.S. releases billions in frozen funds, while a U.S. official rejected Iran’s position on that point.

Nuclear Questions Remain Unresolved

The nuclear dimension of the deal is arguably its most complicated element, and it remains the likeliest source of future friction. On Saturday, Trump had said that a deal would result in the elimination of Iran’s enriched uranium stockpile that could be used in a nuclear weapon.

That position appears to go further than what Iranian officials have accepted. In the past, Trump has also repeatedly called for the dismantling of Iran’s entire nuclear program, while Iran wants billions of dollars in frozen assets abroad and the lifting of U.S. and international sanctions.

European leaders signaled they were prepared to lift sanctions on Tehran in exchange for verifiable steps to curb its nuclear program, stressing their readiness to work with the U.S., Iran, and the International Atomic Energy Agency to ensure Tehran never acquires a nuclear weapon.

Several European nations had previously committed to a UK and French-led defensive mission to help secure the Strait of Hormuz, though those plans were put on hold while the war was ongoing. It is unclear what happens if no agreement is reached during the 60 days of negotiations, though Trump told The New York Times that he could relaunch attacks on Iran or make the U.S. “the guardian of the Middle East” in return for 20% of the region’s revenues if talks collapse.

Israel Complicates the Picture

The deal came together despite significant tension over Israel’s ongoing military activity in Lebanon. Israel had not commented on the agreement, while Trump criticized Prime Minister Benjamin Netanyahu, calling him “a very difficult guy.” Israeli forces had launched airstrikes in Beirut earlier on Sunday, before news of the agreement emerged. The strikes drew condemnation from both Washington and Tehran, though they did not ultimately derail the talks.

Iranian Foreign Minister Abbas Araghchi warned that Israeli attacks in Lebanon need to be completely halted and that the U.S. bears responsibility for implementing the agreement. He made those remarks during separate phone calls with his counterparts in Turkey, Iraq, and Egypt. Meanwhile, an Israeli official briefed on the matter told NBC News that Prime Minister Netanyahu is trying to arrange a meeting with Trump to discuss the Iran deal.

Markets Soar as Oil Prices Drop

Global financial markets responded immediately and positively to the news. World share prices soared after the tentative deal was announced, while oil prices fell more than $4 a barrel. The future for the S&P 500 was up 1.2%, and that for the Dow Jones Industrial Average gained 1%, auguring likely early gains for Wall Street. European exchanges also climbed sharply across the board.

Germany’s DAX advanced 1.7% to 25,066.48, while France’s CAC 40 added 1.7% to 8,410.36. Britain’s FTSE 100 gained 0.8% to 10,553.18. The moves reflect how significantly the months-long blockade of the Strait of Hormuz had rattled global energy supply chains. Before the war, the strait handled about 20% of global oil and liquefied natural gas, and its effective closure had sent energy prices climbing and raised inflation fears worldwide.

China also welcomed the development. Chinese foreign ministry spokesperson Lin Jian told reporters that the Strait of Hormuz is an important waterway for international navigation, and that restoring stability in the strait serves the common interests of regional countries and the international community. Beijing expressed hope that safe and free navigation through the strait would be restored as soon as possible.

As for who will sign on behalf of the United States, that remains to be confirmed. Vice President JD Vance told Fox News on Sunday evening that he plans to attend the official signing ceremony, though Trump himself could also go.

“I think we’re still figuring out the logistics on who’s going to attend that signing ceremony,” Vance said. “I certainly plan to be there, but it’s possible the President himself could be there.” Trump is scheduled to attend the G7 summit in France around the same period, which may factor into the final decision.