The United States and Iran have agreed to a deal to end hostilities, Pakistani Prime Minister Shehbaz Sharif announced Sunday. President Trump confirmed the news, stating he is lifting the U.S. blockade and that Iran is expected to reopen the Strait of Hormuz. An official signing ceremony is planned for Friday in Switzerland, though electronic signing was expected Sunday.
The agreement marks the biggest diplomatic breakthrough of the conflict, buying time to address the most difficult questions surrounding Iran's nuclear program. It comes after 107 days of war that triggered a global energy shock. Pakistan and Qatar served as mediators in the negotiations.
The deal is expected to extend the ceasefire by 60 days and restore shipping through the Strait of Hormuz, which handled roughly 20% of global oil and liquefied natural gas before hostilities. However, core nuclear issues are left for further talks over the next two months, with more detailed nuclear negotiations to follow.
If implemented, the pact could ease the severe energy market disruptions caused by the war, restoring critical oil and gas flows. For global markets, the reopening of the strait would be a immediate relief, but the success hinges on the nuclear negotiations that remain unresolved.
The memorandum of understanding was expected to be signed electronically Sunday, though it remains unclear if that occurred. Sharif and Iranian officials confirmed the Friday ceremony in Switzerland, signaling ongoing commitment to the diplomatic process.