DUBAI/WASHINGTON, June 15 — US and Iranian officials said early this morning they had agreed on a peace framework to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz, potentially lowering energy prices once oil shipments resume through the critical waterway.
"The Deal with the Islamic Republic of Iran is now complete," US President Donald Trump wrote on his Truth Social platform at around 5.30 pm ET local time in Washington on Sunday (5.30 am in Malaysia on Monday).
His post came shortly after Pakistan Prime Minister Shehbaz Sharif, whose country has served as a mediator, announced that a deal had been struck early on Monday local time.
The pact will be officially signed on Friday in Switzerland, Sharif wrote.
The precise terms were not immediately known. 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".
Lebanon has been a sticking point in negotiations, with Israel and Hezbollah ignoring calls from Trump and others to stop attacks on each other in recent weeks.
Trump said the Strait of Hormuz, a major shipping lane for global energy supplies that Iran has effectively shut down for months, would reopen on Friday and that he had ordered an end to the US blockade of Iranian ports.
"Ships of the World, start your engines. Let the oil flow!" Trump wrote.
Oil prices fell on the news. Brent crude futures dropped 4 per cent in early trading on Monday, while US West Texas Intermediate slid more than 4.6 per cent.
Iran's deputy foreign minister, Kazem Gharibabadi, said a broader agreement would be negotiated during a 60-day ceasefire period, including sanctions relief. Sources previously told Reuters that the fate of Iran's nuclear programme would also be addressed during those talks.
Thousands of people have been killed, mostly in Iran and Lebanon, since US and Israeli forces first attacked Iran on February 28. Iran has struck Israel and Gulf states hosting US bases and has effectively blockaded the Strait of Hormuz, driving up global energy prices. US forces have blocked Iranian ports in response.
There was no immediate reaction to the announcement from Israel, which has said it was not party to the planned US-Iran deal.
The Iran war has become a political liability for Trump and fellow Republicans in Congress, with opinion polls showing Americans increasingly frustrated by rising petrol prices ahead of November's midterm elections. Trump has also faced pressure from members of his own party who insist Iran's nuclear programme must be completely dismantled.
Israeli attack
The agreement was reached despite an Israeli strike on Lebanon yesterday that drew criticism from both Iran and Trump.
Iranian negotiator Mohammad Baqer Qalibaf earlier said Israel's latest attack on the southern suburbs of Beirut, which Israel said targeted Iranian-backed Hezbollah militants, showed the United States lacked "the will and ability to fulfil your commitments" in a post on X.
Iran's foreign ministry said it held the United States responsible for the attack. Iran warned of a "strong response", while its top joint military command said the "finger (is) on the trigger", ready to fire at the "enemy's heart".
In a post earlier yesterday, Trump said: "This morning's attack on Beirut should not have happened, particularly on a special day when we are so close to a Peace Deal with Iran."
Prime Minister Benjamin Netanyahu has differed with Trump over US demands that Israel curb its military action in Lebanon to allow the United States to secure a deal with Iran.
Israel has said it will retain freedom of operations in Lebanon, while Iran has made a full ceasefire there an important component of its demands.
Trump updated Netanyahu on progress towards a peace deal during a phone call yeserday, Israel's N12 reported, citing a senior official.
Deal terms
A senior Iranian official earlier told Reuters that, under the terms of the draft agreement, the United States would release US$25 billion in frozen Iranian assets, while Iran would agree not to produce or acquire nuclear weapons.
The official said Iran had agreed to maintain the nuclear status quo, including refraining from uranium enrichment and expanding nuclear facilities, until a final agreement is reached.
A US official, speaking before the deal was announced, said the agreement would ultimately lead to the dismantling of Iran's nuclear programme, with its stockpile of highly enriched uranium destroyed and removed.
However, a senior Iranian official said the draft agreement would allow Iran, which denies seeking a nuclear bomb, to dilute its enriched uranium within the country.
Qatari negotiators flew to Tehran yesterday morning as part of efforts to finalise the agreement, a source familiar with the matter told Reuters.
At pro-government rallies across Iran on Saturday night, residents and news agencies reported that hardliners opposed to the framework agreement had voiced their dissatisfaction.
A resident in the northeastern city of Mashhad told Reuters that some protesters chanted "Death to the compromiser", in an apparent reference to Foreign Minister Abbas Araqchi.
International reaction
International leaders welcomed the breakthrough while reiterating concerns over Iran's nuclear ambitions.
In a joint statement, the leaders of Britain, France, Germany and Italy said: "Iran must never acquire a nuclear weapon. We stand ready to work with the US, Iran and the IAEA to this end."
British Prime Minister Keir Starmer said: "We are clear that toll-free freedom of navigation must now be restored in the Strait of Hormuz ... Iran must never have a nuclear weapon."
