The US and Iran have finalized a deal to end the war in West Asia and reopen the Strait of Hormuz. The signing of the deal is scheduled to be held in Switzerland on Friday.
US President Donald Trump made the announcement via Truth Social on Sunday evening, easing pressure on the global energy markets.
"The Deal with the Islamic Republic of Iran is now complete," Trump wrote on his social media platform.
His post came shortly after Pakistani Prime Minister Shehbaz Sharif, whose country has served as a mediator, announced a deal had been struck early on Monday local time. Sharif said in a post on X that the pact called for "the immediate and permanent termination of military operations on all fronts, including in Lebanon."
Meanwhile, Iran's deputy foreign minister, Kazem Gharibabadi, confirmed the agreement on state television but said Iran would not start implementing it until it was signed on Friday.
Iran's National Security Council has also confirmed the finalisation of the text for the Memorandum of Understanding between the two countries. The Council also stated that war and military operations on all fronts, including Lebanon, will end immediately and permanently from Monday.
There was no immediate reaction to the announcement from Israel, which has said it was not party to the U.S.-Iran talks.
Hormuz to reopen
The Strait of Hormuz is set to be fully reopened after the official signing of the deal. Trump stated that he had also ordered the end of the US blockade of Iranian ports.
“I hereby fully authorise the toll-free opening of the Strait of Hormuz and, simultaneously, authorise the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!” Trump said.
Iran’s nuclear programme to be discussed
According to Reuters, the fate of Iran's nuclear program will be discussed during a 60-day ceasefire period post the signing of the deal. Iran's deputy foreign minister, Kazem Gharibabadi, said a more expansive agreement would also be negotiated during this period.
The agreement calls for the US and Iran to negotiate over Iran's nuclear enrichment and the disposal of its highly enriched uranium during this 60-day window.
Frozen funds to be released
Before the signing of the deal, a senior Iranian official told Reuters that, as per the agreement, the United States would release $25 billion of frozen Iranian assets.
Oil prices fall
Oil prices have sunk more than 4% after US President Donald Trump announced the deal with Iran. Brent crude futures fell 4% in early trading on Monday, while U.S. West Texas Intermediate slid more than 4.6%. Stock markets in Asia jumped.
The deal was negotiated through mediators that included Pakistan and Qatar, who initially got a two-week ceasefire agreement on April 8. The ceasefire was extended till the completion of the talks.
The US and Israel launched attacks on Iran on February 28 that saw Tehran lose several of its top leadership, including the Supreme Leader Ayatollah Ali Khamemei, Secretary of the Supreme National Security Council Ali Larijani, Islamic Revolutionary Guard Corps Commander Mohammad Pakpour among others.
Khamenei's son, Mojtaba, is now the supreme leader, but has not been seen in public since the war began.
-With agency inputs from PTI & Reuters
