US and Iran Reach Historic Peace Deal; Strait of Hormuz to Reopen

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Sunil Kumar
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US Iran peace deal Geneva Strait of Hormuz

US and Iran Reach Breakthrough Peace Deal to End Middle East War

In a major diplomatic breakthrough, the United States and Iran have reached a peace agreement establishing an “immediate and permanent” end to military actions on all fronts, including Lebanon. The deal, mediated by Pakistan and Qatar, signals the apparent conclusion of more than three months of intense warfare in the Middle East that began in late February with US-Israeli strikes on Iran and subsequent regional escalations.

The announcement triggered immediate global economic relief. Upon market openings on Monday, oil prices plunged more than 4% in Tokyo, while Japan’s Nikkei stock index surged by 3%.

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De-escalation and the Reopening of the Strait of Hormuz

A primary cornerstone of the Memorandum of Understanding (MoU) is the immediate lifting of the US naval blockade on Iranian ports and the reopening of the strategic Strait of Hormuz.

President Donald Trump marked the announcement on social media on his 80th birthday, stating: “I hereby fully authorise the toll-free opening of the Strait of Hormuz and, simultaneously herewith, authorise the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow.”

Before the conflict, the Hormuz route handled roughly 20% of global oil and liquefied natural gas (LNG). While the opening is authorized, officials note that the strait may not resume full pre-war shipping volumes immediately due to required mine-clearing operations, infrastructure repairs, and security coordination.

The 14-Point Memorandum of Understanding (MoU)

According to reports from Iran’s Mehr news agency, the framework consists of a 14-point roadmap. This structure establishes an immediate cessation of hostilities while setting up a strict 60-day verification and negotiation window in Geneva, Switzerland, to hammer out a final accord regarding Iran’s nuclear program and economic reconstruction.

Notably, discussions regarding Iran’s ballistic missile program and its regional alliances have reportedly been removed from the active agenda.

Key Terms of the Transitional Framework

Focus Area Core Provisions & Milestones
Hostilities & Blockade Permanent end to war on all fronts (including Lebanon); full removal of the US naval blockade within 30 days.
Financial Assets Release of $24 billion in frozen Iranian assets over the 60 days. $12 billion is to be released upfront before final negotiations commence.
Strait Management Reopening of the Strait of Hormuz within 30 days under Iranian operational arrangements.
Military Footprint US commitment to withdraw forces from around Iran; no new troop deployments or fresh sanctions during the 60-day window.
Nuclear & Sanctions Reaffirmation of Iran’s NPT commitments against producing nuclear weapons; phased removal of UN, IAEA, and US primary/secondary sanctions.
Reconstruction A reconstruction program to be presented by the US and its allies totaling at least $300 billion.

Diplomatic Timelines and Next Steps

The official signing ceremony for the diplomatic framework is scheduled for June 19 in Geneva, Switzerland.

  • Verifying Commitments: Iran’s Deputy Foreign Minister Kazem Gharibabadi emphasized that Tehran will closely monitor the initial phase. “Negotiations for a final deal will be held during a 60-day period after verifying that the USA implemented its commitments under the deal,” Gharibabadi stated, adding that the text of the MoU will be made public after Friday’s signing.

  • High-Level Attendance: US Vice President JD Vance confirmed his plans to attend the Geneva signing ceremony, noting to Fox News that it is highly possible President Trump may also travel to Switzerland for the event.

  • International Alignment: UN Secretary-General António Guterres hailed the accord as a “critical step.” In a joint statement, the United Kingdom, France, Germany, and Italy expressed readiness to lift their respective sanctions aligned with the US timeline to achieve a permanent diplomatic settlement.

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