US and Iran agree immediate, permanent end to military operations in surprise deal

The United States and Iran have agreed to an “immediate and permanent” end to military operations on all fronts, including Lebanon, in a deal announced by Pakistan and confirmed by both capitals. An official signing ceremony was scheduled for June 19 in Switzerland.

Deal announced by Pakistan, confirmed by Washington and Tehran

Pakistani Prime Minister Shehbaz Sharif said the deal calls for an immediate and permanent end to military operations. He also thanked the leaders of Qatar, Saudi Arabia and Turkey for their support in the mediation effort.

The initial announcement from Pakistan was quickly confirmed by Washington and Tehran, and an official signing ceremony was scheduled for June 19 in Switzerland.

Leaders and statements

US President Donald Trump posted on social media on Sunday that “The Deal with the Islamic Republic of Iran is now complete.” In that post he said he authorised the reopening of the Strait of Hormuz and the immediate removal of the United States naval blockade.

Iran’s Deputy Foreign Minister Kazem Gharibabadi said in televised comments that the deal put an “immediate end” to the countries’ war and that they would hold talks within two months to seek a “final agreement.”

Money, oil and markets

The content of the agreement remained unclear, but Mehr news agency reported that the package includes the release of about $24 billion in frozen Iranian assets during a 60-day negotiation period. Markets reacted immediately: crude prices fell, with West Texas Intermediate approaching $80 a barrel and Brent around $83.60, easing inflation concerns tied to higher energy costs.

Background and remaining questions

The conflict began in late February with strikes between the US, Israel and Iran and escalated to include a near blockade of the Strait of Hormuz and a US naval blockade of ship traffic to Iranian ports. During negotiations both sides released conflicting information about the deal as they sought to show advantage coming out of the war.

Details on contentious issuessuch as the US effort to address Iran’s nuclear activities and its stockpile of highly enriched uraniumwere not clarified in the initial announcements.

International reaction

UN Secretary-General Antonio Guterres called the agreement a “critical step” toward resolving the war in the Middle East. The United Kingdom, France, Germany and Italy said they were prepared to lift sanctions imposed on Iran and would work “with the US, Iran and regional partners to seize this moment, maintain momentum and achieve a long-term diplomatic settlement.”

As the signing date approaches, the deal’s specific terms and the sequencing of asset releases and negotiations will be watched closely by governments, markets and the region’s populations.