WASHINGTON — In a major diplomatic breakthrough that promises to ease a crippling global energy crisis, President Donald Trump announced on Sunday that the United States and Iran have finalized a sweeping agreement to end their months-long military conflict.

As part of the historic accord, the United States will immediately end its naval blockade of Iranian ports, while Tehran has agreed to a "toll-free" reopening of the Strait of Hormuz, a vital maritime artery for the global oil supply that has been heavily restricted since the war began in late February.

The agreement, brokered with the help of international mediators from Pakistan and Qatar, formally halts all military operations between the two adversaries. The memorandum of understanding is scheduled to be officially signed on Friday, June 19, in Switzerland.

"Let the Oil Flow": The Official Announcements

President Trump confirmed the conclusion of the negotiations late Sunday in a triumphant post on Truth Social, signaling an end to a war that has heavily damaged the global economy and triggered skyrocketing inflation in the energy sector.

"The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!" Trump wrote. "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!"

Pakistani Prime Minister Shehbaz Sharif, whose government played a crucial role as a primary mediator alongside Qatar, issued a parallel statement. Sharif confirmed that both nations have declared an "immediate and permanent termination of military operations on all fronts."

In Tehran, Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed on state television that the text of the agreement had been finalized. However, highlighting the deeply entrenched hostilities between the two nations, Gharibabadi noted that the framework was drafted in an "atmosphere of continued distrust" and stressed that the diplomatic milestone "does not signify trust in the enemy."

Background: A devastating 100-Day Conflict

The diplomatic resolution brings a close to a devastating conflict that erupted on February 28, 2026. The war, initially launched with coordinated strikes by the U.S. and Israel, resulted in the death of Iran's Supreme Leader, Ayatollah Ali Khamenei, and plunged the broader Middle East into a state of high-alert warfare.

In retaliation to the initial strikes, Iranian forces heavily militarized and mined the Strait of Hormuz. Because the narrow waterway connects the Persian Gulf to the Gulf of Oman and the open ocean, it normally accommodates roughly 20 percent of the world's daily oil consumption. Its closure sent global energy markets into a tailspin.

To counter Tehran's control over the strait, the United States military implemented a strict naval blockade in April, aggressively restricting maritime traffic attempting to enter or exit Iranian ports. The standoff effectively paralyzed international trade routes in the region, causing severe supply chain disruptions.

Why It Matters

The immediate geopolitical and economic implications of the agreement are massive:

• Global Energy Relief: The reopening of the Strait of Hormuz is expected to rapidly stabilize global oil and natural gas prices, which have battered consumer wallets and caused severe strain on the global economy over the past three months. Following the announcement on Sunday, oil and crop prices already began to experience a sharp decline in international markets.

• Sanctions and Trade: The lifting of the U.S. Naval blockade removes a massive barrier to maritime trade. Furthermore, European nations—including the U.K., France, Germany, and Italy—have signaled a willingness to lift regional sanctions on Iran, offering the country an economic lifeline.

• Domestic U.S. Politics: The conclusion of the conflict provides a significant foreign policy victory for the Trump administration. Facing immense pressure to lower domestic fuel costs ahead of the November midterm elections, the administration's ability to secure a "toll-free" reopening of the strait neutralizes a major political vulnerability.

The Lebanon Complication and Israeli Resistance

While the U.S. and Iran have agreed to a ceasefire on all fronts, the deal faces severe friction regarding the ongoing conflict in Lebanon.

According to Prime Minister Sharif, the U.S.-Iran agreement explicitly includes an end to military operations involving Hezbollah, the powerful Iran-backed militant group based in Lebanon. However, Israel was largely sidelined from the final stages of the US-Iran negotiations and has openly resisted this stipulation.

Israeli Prime Minister Benjamin Netanyahu reportedly informed the Trump administration that Israel does not consider itself bound by the Lebanon-related provisions of the deal. Netanyahu stated that Israeli Defense Forces (IDF) will not withdraw troops currently stationed in southern Lebanon.

Further complicating the fragile peace, Israel launched a series of airstrikes against Hezbollah targets in the southern suburbs of Beirut on Sunday, shortly before the deal was announced. The strikes, which Lebanese health authorities reported killed at least three people, drew a rare rebuke from President Trump. The U.S. president stated the Israeli strikes "should not have happened," warning all parties to stand down to preserve the diplomatic framework.

What Happens Next?

The official signing ceremony in Switzerland this Friday will transition the conflict from a military standoff into a highly complex, 60-day diplomatic negotiation phase.

1. Immediate Mine Clearing: During the first 30 days of the agreement, Iranian forces are tasked with physically clearing the naval mines from the Strait of Hormuz to allow for safe, unimpeded commercial transit.

2. Pre-Implementation Talks: Qatari mediators, who recently concluded 17 hours of intensive negotiations in Tehran, are currently hosting preparatory meetings in Doha. These discussions will finalize the logistics for the coming weeks.

3. The Nuclear Question: Once the memorandum is signed, Washington and Tehran will enter 60 days of "technical talks." The primary focus will be the fate of Iran's nuclear development program—a stated primary objective of the initial U.S. military intervention.

Iran currently possesses a stockpile of over 9,000 kilograms of enriched uranium, with a portion enriched to near weapons-grade levels. Negotiators will attempt to finalize a mechanism to either dilute or remove the uranium under the supervision of the International Atomic Energy Agency (IAEA). Any phased relief of frozen Iranian assets and international sanctions will be heavily dependent on the success of these technical nuclear negotiations.

Source Attribution & Methodology

This report was compiled using verified statements and real-time updates from official government communications, state media, and leading international news agencies. For further reading, please refer to our primary sources:

• CBS News - Trump says U.S. deal with Iran "is now complete," authorizes removal of Navy blockade

• Financial Times - Iran and US agree deal to open Strait of Hormuz and extend ceasefire

• PBS News - Deal is reached to end Iran war and Trump orders stop to U.S. naval blockade

• Time Magazine - Trump Says U.S. and Iran Reach Deal to End War