Key Facts
US President Donald Trump announced on Sunday that a peace agreement with Iran has been finalised. In a post on his Truth Social platform, Trump declared the deal 'now complete' and authorised the immediate reopening of the Strait of Hormuz and the lifting of the American naval blockade.
Pakistan, which had been mediating between the two nations, confirmed the breakthrough. Prime Minister Shehbaz Sharif stated that both sides have agreed to permanently terminate military operations on all fronts, including in Lebanon. The formal signing is expected on Friday in Switzerland.
Details of the Announcement
Trump's post read: 'The Deal with the Islamic Republic of Iran is now complete. 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!'
Shortly after, Shehbaz Sharif wrote 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. Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon.'
Impact on Global Oil Supply
The Strait of Hormuz is one of the world's busiest oil shipping routes, handling nearly one-fifth of global oil and natural gas supply. Iran had effectively closed the waterway when the conflict began on 28 February. The US subsequently announced a blockade of Iranian ports after peace talks in Pakistan failed in April. The reopening is expected to stabilise oil markets and ease supply concerns.
What Readers Should Know
- Full details of the deal have not yet been released.
- Iran had earlier pushed back on Pakistan's statements, raising questions about the agreement's firmness.
- The exact timeline for the Strait of Hormuz reopening to all ships remains unclear.
Frequently Asked Questions
What did Donald Trump announce about the Iran deal?
Trump announced that the peace deal with Iran is complete, authorising the reopening of the Strait of Hormuz and lifting the US naval blockade.
Who mediated the US-Iran peace deal?
Pakistan acted as a mediator between the United States and Iran.
When and where will the deal be signed?
The deal is scheduled to be signed on Friday in Switzerland.
Why is the Strait of Hormuz important?
The Strait of Hormuz is a critical oil shipping route, handling nearly one-fifth of the world's oil and natural gas supply.