US and Iran reach peace agreement after months of conflict, Trump says energy shipments through Hormuz will resume while Iran claims ‘victory’

The United States and Iran have reached a major ceasefire agreement that could bring an end to months of military tensions and reopen one of the world’s most important oil routes, the Strait of Hormuz. US President Donald Trump announced the development on Sunday, 14th June, saying that a deal with Iran had been completed and that shipping through the Strait of Hormuz would resume without restrictions.

The announcement comes after months of conflict that intensified following military operations launched by the US and Israel against Iran in February this year. The Strait of Hormuz, a critical route for global energy supplies, had remained largely shut during the crisis, raising concerns about energy markets and regional stability.

As per reports, leaders of the two sides are expected to meet for a signing ceremony on Friday, June 19, in Switzerland, where Pakistan will also be there as a mediator.

Trump announces breakthrough deal

In a post on Truth Social, Trump declared that the agreement with Iran had been finalised and described it as a major diplomatic achievement.

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

He also announced the reopening of the Strait of Hormuz and the lifting of the US naval blockade. “Congratulations to all! 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!”

In another post, Trump claimed the agreement would bring stability to the wider Middle East and suggested that a broader peace arrangement could follow. “This Great Deal will bring Peace and Security to the whole Region,” he wrote.

Trump also highlighted what he described as his unique role in achieving the breakthrough.

“Many presidents have tried to make Peace with Iran, and all have failed before me. The Leaders of the Region have, for the first time, found a President who can help them achieve real Peace. With the opening of the Strait upon the signing of the Deal on Friday, for purposes of mine removal, oil will flow on both ends again for the Region, and the World!”

Iran later confirmed that an agreement had been reached. Iranian Deputy Foreign Minister Kazem Gharibabadi acknowledged the deal on Sunday, indicating that hostilities between Tehran and Washington would end under the arrangement.

Pakistan announces ceasefire agreement

Before Trump’s statement, Pakistan Prime Minister Shehbaz Sharif publicly revealed that a ceasefire agreement had been reached following intensive diplomatic efforts.

Posting on X, Sharif said the agreement would end military operations across multiple fronts.

“Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and the Islamic Republic of Iran has been REACHED. Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon.”

He said the official signing ceremony would take place in Switzerland on coming Friday, 19th June and thanked several countries that participated in mediation efforts.

“We would like to thank the United States of America and the Islamic Republic of Iran for their commitment to finding a diplomatic solution to the conflict. We would also like to extend our sincere appreciation to our brothers in this mediation effort, the great leadership of the State of Qatar, for their support in reaching this agreement.”

Deal comes after days of uncertainty

The announcement follows several days of speculation that a ceasefire was close. Trump had earlier indicated that a major announcement would be made on Sunday.

However, concerns emerged after Israel reportedly carried out air strikes in Beirut’s southern suburbs, raising fears that tensions could derail the negotiations. Iranian officials had repeatedly warned that attacks on Beirut represented a red line and could trigger retaliation against Israel.

Despite those concerns, diplomatic efforts continued behind the scenes, eventually leading to Sunday’s announcement.

What the agreement contains

Ahead of the formal signing ceremony, Iran‘s semi-official Mehr News Agency published what it described as a draft 14-point memorandum of understanding between Washington and Tehran. Neither government has officially confirmed the contents, but the reported provisions offer a glimpse into what the final agreement may include.

According to Mehr, the proposed memorandum includes a permanent ceasefire on all fronts, including Lebanon, and a US commitment not to interfere in Iran’s internal affairs. The draft also reportedly calls for the lifting of the US naval blockade within 30 days, the withdrawal of US forces from Iran, and the reopening of the Strait of Hormuz under Iranian arrangements.

The reported framework further includes ending sanctions on Iranian oil and energy exports, a commitment by Iran not to pursue nuclear weapons, and a pledge by Washington not to increase military deployments in the region or impose new sanctions.

Mehr also reported that final negotiations would not proceed until part of Iran’s frozen funds are released, oil sanctions are suspended, and the naval blockade is removed. The agency further claimed that the final agreement would eventually be endorsed through a United Nations Security Council resolution.

Iran is presenting the deal as a clear Iranian victory.