US, Iran Reach Deal to End Middle East War, Reopen Strait of Hormuz

The United States and Iran have announced a breakthrough agreement aimed at ending months of conflict across the Middle East and reopening the strategically important Strait of Hormuz, a move expected to ease tensions and stabilise global energy markets.

According to officials from Washington and Islamabad, the agreement is scheduled to be formally signed in Switzerland on Friday, marking what could become one of the most significant diplomatic developments in the region in recent years.

US President Donald Trump declared on Sunday that negotiations had been successfully concluded.

“The Deal with the Islamic Republic of Iran is now complete,” Trump wrote on social media.

“Ships of the World, start your engines. Let the oil flow!”

The Strait of Hormuz, through which a significant portion of the world’s oil exports passes, has remained a major source of international concern since disruptions linked to the conflict triggered volatility in global energy markets.

Iran’s Deputy Foreign Minister, Kazem Gharibabadi, described the agreement as bringing an “immediate end” to the war and said both countries would begin further negotiations within two months to pursue a comprehensive settlement.

Pakistan’s Prime Minister, Shehbaz Sharif, whose government played a mediation role, announced that both sides had agreed to the “immediate and permanent termination of military operations on all fronts, including in Lebanon.”

Despite the optimism surrounding the announcement, important details remain unresolved, particularly concerning Iran’s nuclear programme and its stockpile of highly enriched uranium.

Iranian media reported that the agreement may include the phased release of frozen Iranian assets and a framework for future negotiations, although US officials have yet to publicly confirm those details.

International leaders welcomed the development. Antonio Guterres described the accord as a critical step toward regional stability, while Britain, France, Germany and Italy expressed readiness to support diplomatic efforts and review sanctions measures.

Financial markets reacted positively to the news, with oil prices falling sharply and stock markets posting gains as investors anticipated reduced geopolitical risk.

Analysts say the success of the agreement will depend on its implementation and the ability of both sides to address unresolved disputes, particularly those involving regional security and nuclear activities.