The United States and Iran have reached a peace deal to end their nearly four-month war, with Pakistan’s Prime Minister Shehbaz Sharif announcing the breakthrough on Sunday and President Trump confirming the agreement via Truth Social. The deal marks the culmination of intense negotiations that began after a ceasefire took hold in April, and it promises to end military operations on all fronts, reopen a critical shipping route, and establish a framework for addressing Iran’s nuclear program.
Sharif said in a post on X that “following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED.” The official signing ceremony is scheduled for Friday, June 19, in Switzerland, according to the Pakistani mediator.
Trump authorized what he described as the “toll free opening of the Strait of Hormuz” and directed the immediate removal of the U.S. naval blockade on Iranian ports. The Strait of Hormuz, a critical shipping route through which much of the world’s oil passes, has been effectively closed since the conflict began on February 28, 2026, when U.S. and Israeli forces launched strikes on Iran.
The war that prompted this peace deal emerged from a dramatic escalation in late February. On February 28, the United States and Israel conducted nearly 900 strikes in 12 hours targeting Iranian military sites and government installations, according to the Britannica encyclopedia. The strikes marked the opening of active hostilities in what would become a prolonged and economically disruptive conflict.
The proposed agreement includes a 60-day ceasefire extension during which the Strait of Hormuz would be reopened, Iran could freely sell oil, and both sides would launch talks on Iran’s nuclear program, according to sources including Axios and The Guardian. The blockade of the waterway had created severe supply constraints for oil, gas, and fertilizers globally, sparking price rises and fueling concerns about stagflation. U.S. inflation hit 4.2 percent in May, its highest level in three years, and the European Central Bank announced a quarter-point rate hike on Thursday in response to the energy shock caused by the war.
The path to this deal has been fraught with setbacks and mixed messaging. On April 8, 2026, the U.S., Israel, and Iran agreed to an initial two-week ceasefire mediated by Pakistan after nearly 40 days of fighting. That ceasefire was extended multiple times as negotiators worked toward a broader settlement. By late May, U.S. and Iranian negotiators had reached a tentative agreement to extend the ceasefire by 60 days and begin nuclear talks, though previous potential deals had repeatedly evaporated at the last minute, according to The New York Times.
On June 12, Pakistan’s Prime Minister announced that the U.S. and Iran had agreed to the wording of a final deal text, setting the stage for Sunday’s formal announcement. The agreement comes after Trump canceled planned strikes on Iran and signaled progress in negotiations, though tensions remained high as Israel conducted strikes in Lebanon and the two sides continued to dispute details of implementation.
Sources
- CNBC — confirmed the peace deal announcement by Pakistan PM Sharif and Trump, signing date, Strait of Hormuz opening, naval blockade removal, and global inflation impact
- AP News — reported Pakistan’s announcement that U.S. and Iran agreed to deal wording and ceasefire timeline
- Britannica — detailed the February 28, 2026 strikes involving nearly 900 strikes in 12 hours
- Axios — described deal terms including 60-day extension, Strait of Hormuz reopening, and nuclear talks framework
- The Guardian — outlined proposed deal terms including ceasefire extension and nuclear negotiations
- The New York Times — provided context on previous deal attempts and negotiations history
- Council on Foreign Relations — documented the April 8 ceasefire agreement and Pakistan’s mediation role
