Washington, D.C. — Officials from the United States and Iran have reached a preliminary agreement aimed at ending the ongoing conflict between the two countries, marking a significant diplomatic breakthrough after months of escalating hostilities.

Under the agreement reached on Sunday, the United States will lift its naval blockade on Iran, while the strategically vital Strait of Hormuz will be reopened to international shipping. The announcement has already triggered a sharp decline in global oil prices, although the future of Iran’s nuclear programme remains unresolved and will be addressed in subsequent negotiations.

US President Donald Trump confirmed the development in a post on his social media platform, Truth Social, at approximately 5:30 p.m. local time on Sunday.

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

His statement followed an earlier announcement by Shehbaz Sharif, whose government acted as a mediator during the negotiations. Sharif declared the agreement on Monday morning and said a formal memorandum of understanding (MoU) would be signed in Switzerland on Friday.

Ceasefire Across Multiple Fronts

While the full details of the agreement have not yet been made public, Sharif stated in a post on X that the deal calls for the immediate and permanent cessation of military operations across all fronts, including Lebanon.

Lebanon had emerged as one of the most contentious issues in the negotiations, as both Israel and Hezbollah continued exchanging attacks in recent weeks despite repeated international appeals for restraint.

Meanwhile, Iran’s Supreme National Security Council issued a statement announcing that military operations and hostilities across all theatres, including Lebanon, would permanently cease from Monday night.

Israel, which has repeatedly maintained that it was not directly involved in the US-Iran negotiations, has not issued an official response to the announcement.

Strait of Hormuz Reopening Boosts Markets

Trump stated that the Strait of Hormuz, a crucial artery for global oil and gas supplies that Iran had effectively closed for several months, would reopen on Friday.

He also confirmed that he had ordered an end to the US naval blockade imposed on Iranian ports.

“Ships of the world, start your engines. Let the oil flow,” Trump wrote.

Financial markets reacted positively to the announcement. Brent crude futures fell by approximately four per cent in early Monday trading, while US West Texas Intermediate crude declined by more than 4.6 per cent. Asian equity markets also recorded significant gains amid expectations of improved energy supply stability.

Critics Question Nuclear Guarantees

The agreement has nevertheless drawn criticism from some foreign policy experts and former officials.

Former US State Department spokesperson Matthew Miller argued that the deal effectively grants Iran significant concessions without securing firm commitments regarding its nuclear programme.

“There is no guarantee that the nuclear programme will ultimately be addressed,” Miller said. “However, Iran has demonstrated that it can disrupt the global economy and still obtain concessions from the United States.”

Iranian Deputy Foreign Minister Kazem Gharibabadi said further negotiations would take place during a 60-day ceasefire period. Those discussions are expected to focus on sanctions relief, frozen Iranian assets, and the future of Iran’s nuclear activities.

According to Reuters, the highly sensitive issue of Iran’s nuclear programme will be among the principal topics of the next round of talks.

Political Pressure Mounts in Washington

The conflict began on 28 February when US and Israeli forces launched military strikes against Iranian targets. Since then, thousands of people have reportedly been killed across Iran and Lebanon.

Iran responded by targeting Israeli positions and US military facilities in Gulf states while also closing the Strait of Hormuz, a move that significantly increased global energy prices.

The United States subsequently imposed a naval blockade on Iranian ports.

Rising fuel prices and growing concerns over the economic consequences of the war had become increasingly problematic for Trump and his Republican allies ahead of the upcoming midterm elections in November.

At the same time, many Republicans continue to insist that any final agreement must permanently dismantle Iran’s nuclear capabilities.

Republican Senator Lindsey Graham welcomed the agreement but stressed that future negotiations concerning Iran’s nuclear programme would face close scrutiny.

“Under American law, any nuclear agreement with Iran must be submitted to Congress for review and a vote,” Graham said. “Congratulations to everyone who helped bring us to this point.”

Nuclear Programme Remains Key Obstacle

During his first term, Trump withdrew the United States from the 2015 nuclear agreement negotiated by former President Barack Obama. That accord lifted sanctions on Tehran in exchange for strict limitations on its nuclear programme and extensive international inspections.

Following Washington’s withdrawal, Iran accelerated uranium enrichment and reportedly accumulated nearly 400 kilograms of material enriched to levels approaching weapons-grade purity.

The future management of that enriched uranium stockpile is expected to become one of the central issues in upcoming negotiations.

According to a senior Iranian official quoted by Reuters before the agreement was announced, the draft deal includes a provision under which the United States would release approximately $25 billion in frozen Iranian assets.

A US official, meanwhile, stated that the ultimate objective of the agreement is the dismantling of Iran’s nuclear programme and the destruction of its highly enriched uranium stockpiles.

Iranian officials have offered a different interpretation, saying Tehran would be permitted to retain the material within the country while reducing its enrichment levels.

Israel-Iran Tensions Persist

The agreement was reached despite an Israeli military strike in Lebanon on Sunday, an operation criticised by both Iran and Trump.

Disagreements between Trump and Israeli Prime Minister Benjamin Netanyahu over military operations in Lebanon have reportedly complicated diplomatic efforts.

Israel has maintained that it intends to continue its campaign in Lebanon, while Iran has insisted that a comprehensive ceasefire there is a prerequisite for broader regional stability.

According to a report by Israeli broadcaster N12, Trump briefed Netanyahu by telephone on Sunday regarding progress in the peace negotiations.

In an interview with The New York Times, Trump described Netanyahu as “a very difficult person” and argued that the Israeli leader should be grateful for Washington’s efforts to shield Israel from the threat of a nuclear-armed Iran.

As preparations begin for the formal signing ceremony in Switzerland later this week, attention is now shifting towards the next phase of negotiations, where the long-term future of Iran’s nuclear programme, sanctions relief, and regional security arrangements will determine whether this preliminary agreement evolves into a lasting peace settlement.