Trump and Iran Reach Peace Deal to End War and Reopen Strait of Hormuz

Historic Agreement Ends Three-Month Conflict

President Donald Trump and other world leaders have confirmed that the United States and Iran have reached a peace deal , bringing an end to a conflict that has disrupted global oil markets and threatened regional stability for over three months. The deal, set to be signed on Friday in Switzerland, will formally put an end to the war launched on February 28 by the US and Israel against the Iranian regime .

In a statement posted to social media, Mr. Trump declared that the deal with Iran "is now complete." "I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade," Mr. Trump wrote . "Ships of the World, start your engines. Let the oil flow!"

Pakistan's Prime Minister Shehbaz Sharif announced Sunday on X: "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" . Iranian Deputy Foreign Minister Kazem Gharibabadi said the text of the memorandum of understanding between the U.S. and Iran has been finalized and confirmed it is scheduled to be signed Friday in Switzerland .

Economic Relief and Regional Implications

The peace deal would formally end the high-stakes conflict that began on Feb. 28, which disrupted roughly 20% of global oil shipments that pass through the Strait of Hormuz and contributed to higher energy prices worldwide . Markets responded immediately to the news, with Asian equities rising Monday off the potential agreement, with Hong Kong's Hang Seng index rising 1.2%, China's Shanghai Composite index increasing 1.2%, Japan's benchmark index Nikkei 225 gaining 5.4% to hit a record high, and South Korea's Kospi climbing 5% .

The expectation that crude oil could soon flow more freely in the Middle East put pressure on oil prices, with US West Texas Intermediate crude futures down 4.8% and Brent crude, the global benchmark, down 4% . The reopening of the vital waterway promises to restore normal shipping patterns that have been severely disrupted since the conflict began.

According to Iranian and Pakistani sources, the agreement also includes a ceasefire in the conflict between Israel and Hezbollah, the Lebanese terror group backed by Iran . However, Israeli Prime Minister Benjamin Netanyahu told Mr. Trump Israel won't pull its troops from Lebanon and doesn't consider itself obligated go along with the Lebanese portions of the deal , suggesting potential complications ahead.

Nuclear Negotiations and Future Challenges

Key issues like Iran's nuclear program are expected to be addressed later , with the deal expected to begin 60 days of talks on Tehran's nuclear program . Among the first issues to be negotiated during the 60-day ceasefire is what will happen to Iran's highly enriched uranium, with the Islamic Republic having 440.9 kilograms (972 pounds) of uranium that is enriched up to 60% purity, a short, technical step from weapons-grade levels of 90% .

According to the Tasnim news agency, Gharibabadi said the agreement "does not signify trust in the enemy and was drafted in an atmosphere of continued distrust" , highlighting the fragile nature of the accord. US President Donald Trump reportedly threatened that attacks on Iran could resume if the sides ultimately fail to reach a nuclear accord .

The agreement represents a significant diplomatic breakthrough after months of escalating tensions, but its long-term success will depend on both sides' ability to navigate complex nuclear negotiations and regional security concerns in the coming weeks. With global energy markets already responding positively, the world watches to see whether this fragile peace can hold and evolve into a lasting resolution.