President Donald Trump announced Sunday that the United States and Iran have reached a peace agreement ending their conflict, with both nations committing to cease military operations immediately and the U.S. lifting its naval blockade of Iranian waters.
Iran’s Supreme National Security Council issued a parallel statement confirming the memorandum of understanding, marking the conclusion of months of diplomatic negotiations between Washington and Tehran. The agreement encompasses immediate cessation of military activities across multiple theaters, including operations involving Iranian-backed forces in Lebanon.
Trump posted on his Truth Social platform that “The Deal with the Islamic Republic of Iran is now complete.” He announced authorization for the opening of the Strait of Hormuz and the removal of the U.S. naval blockade, saying “Ships of the World, start your engines. Let the oil flow!”
What Happened
According to Iran International, the memorandum specifies that all military operations will cease “immediately and permanently” effective Sunday night. The U.S. naval blockade, which restricted Iranian maritime activities, will be lifted concurrently, according to reports from multiple outlets covering the announcement.
The agreement establishes a framework for further negotiations. Both nations must fulfill initial commitments before entering a 60-day negotiating period focused on Iran’s nuclear program and a broader long-term accord. The memorandum is scheduled for formal signing on June 19.
In follow-up posts, Trump characterized the agreement as historically significant. “Many presidents have tried to make Peace with Iran, and all have failed before me,” he wrote. “The Leaders of the Region have, for the first time, found a President who can help them achieve real Peace.”
The Reaction
International officials offered immediate endorsement of the accord. German Chancellor Friedrich Merz said, “I welcome the agreement between the U.S. and Iran and congratulate President Trump and the Iranian side on this diplomatic breakthrough.” Merz added that the deal could “pave the way for a reinvigorated global economy and a more secure Middle East.”
U.S. Ambassador Michael Waltz praised the negotiation as advancing American security interests. “The President has put our country first and negotiated a peace deal that will keep us safe and prevent Iran from ever getting a nuclear weapon,” Waltz said in a post on X. He highlighted Trump’s approach to maximizing leverage while limiting casualties through the credible display of military force.
Iranian officials acknowledged the diplomatic roles played by intermediaries, thanking Pakistan and Qatar for facilitating talks and helping broker the agreement.
What This Means
Global energy markets responded swiftly to the announcement. Oil prices declined sharply Monday as traders assessed reduced Middle East tensions and diminished risk of supply disruptions. Brent crude futures fell $3.58, or 4.1%, to $83.75 per barrel, while U.S. West Texas Intermediate crude dropped $4.01, or 4.7%, to $80.87 per barrel, according to Reuters data.
The sharp selloff followed an earlier decline on Friday as market participants increasingly priced in the likelihood of an agreement. Both major oil benchmarks had already fallen more than 3% that day on speculation about easing regional tensions.
The memorandum’s implementation will proceed through two phases. The immediate phase involves military cessation and blockade removal; the subsequent 60-day window establishes conditions for negotiating a comprehensive agreement addressing Iran’s nuclear program and long-term relations between the two nations. The structure reflects both sides’ need to verify compliance before advancing to broader negotiations.
