President Donald Trump announced Sunday that a peace agreement with Iran has been reached and declared the immediate reopening of the Strait of Hormuz, ending a U.S. naval blockade that has disrupted global shipping.
Trump posted on Truth Social that “The Deal with the Islamic Republic of Iran is now complete,” and said he authorized the toll-free reopening of the Strait and the removal of the blockade. The announcement followed confirmation from Pakistani Prime Minister Shehbaz Sharif, who acted as mediator, that talks had concluded and that a formal signing ceremony is scheduled for June 19 in Switzerland.
According to officials and media reports, the memorandum of understanding includes commitments by Iran not to pursue nuclear weapons and a pledge by the United States to lift its naval restrictions on Iranian ports. Tehran reportedly would receive the release of $25 billion in frozen assets as part of the agreement. Iran’s Foreign Minister Abbas Araghchi described the accord as a 14-point deal with the removal of the blockade listed among its primary provisions.
The apparent breakthrough comes after more than 100 days of conflict that previously raised fears of wider regional escalation and disrupted oil shipments through one of the world’s busiest maritime chokepoints. Oil markets reacted to rising hopes for restored flows: Brent crude settled lower, recording its lowest close since early March, while U.S. West Texas Intermediate also fell to multi-week lows.
Some analysts cautioned that reopening the Strait and normalizing shipping will take time and logistical coordination, meaning energy markets could remain volatile if flows are slow to resume. Iranian officials had offered mixed public signals in the days before the announcement, with Tehran’s foreign ministry disputing elements of the timeline and the Islamic Revolutionary Guard Corps questioning claims of an immediate signing.
Vice President JD Vance has said he plans to attend the June 19 signing, and Trump indicated he may also be present. Details of enforcement mechanisms, verification steps, and the precise schedule for releasing assets and reopening ports were not released as of Sunday.
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