Highlights
- US and Iran announce agreement to end conflict and reopen Strait of Hormuz
- Deal expected to be signed in Switzerland on Friday
- Questions remain over Iran’s nuclear programme and uranium enrichment
- Markets react positively as oil prices fall and stocks rise
THE UNITED STATES and Iran said they had reached a deal to end the war across the Middle East, including in Lebanon, and reopen the Strait of Hormuz, though questions remain over Tehran's nuclear programme.
Washington and Islamabad said the agreement would be signed on Friday in Switzerland, in what could mark a major step towards ending months of conflict that have claimed thousands of lives and disrupted energy markets.
Few details of the agreement were made public, but US president Donald Trump said the Strait of Hormuz, a key route for global oil supplies, would reopen following the signing.
"The Deal with the Islamic Republic of Iran is now complete," US president Donald Trump posted on Sunday on social media as he marked his 80th birthday.
"Ships of the World, start your engines. Let the oil flow!"
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Shortly afterwards, Iran's deputy foreign minister Kazem Gharibabadi said in televised comments that the deal brought an "immediate end" to the countries' war and that talks would be held within two months to seek a "final agreement".
Only hours earlier, Tehran had vowed to retaliate after an Israeli strike on Iranian ally Hezbollah in the suburbs of Beirut, a move that threatened to derail the agreement.
Later in the day, Pakistani prime minister Shehbaz Sharif announced: "Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon."
He also thanked the leaders of Qatar, Saudi Arabia and Turkey for supporting the mediation effort.
Details remain unclear
The contents of the agreement, which follows weeks of difficult negotiations and repeated warnings from Trump of renewed hostilities unless Iran reached a deal, remain unclear.
Iran's Mehr news agency reported that the United States would release $12 billion in frozen Iranian assets before negotiations begin.
It cited a 14-point "memorandum of understanding" between the two countries, which it said included "the release of 24 billion dollars in frozen Iranian assets during the 60-day negotiation period" beginning after the MoU is signed.
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The Trump administration did not immediately comment on the details of the agreement, which could prove contentious as Washington continues efforts to curb Tehran's nuclear ambitions and address its stockpile of highly enriched uranium, believed to have been buried by US strikes last year.
In an interview with the New York Times on Sunday, Trump said Washington was still negotiating whether Iran would suspend uranium enrichment for 20 years.
The US president suggested he might accept a 15-year suspension but said he did not want to negotiate through the media.
'Seize the moment'
The announcement was met with relief internationally and hopes of a lasting end to the conflict.
UN secretary-general Antonio Guterres described it as a "critical step" towards resolving the war in the Middle East.
The United Kingdom, France, Germany and Italy said they were prepared to lift sanctions imposed on Iran and would work "with the US, Iran and regional partners to seize this moment, maintain momentum and achieve a long-term diplomatic settlement".
The announcement also eased market concerns at the start of trading on Monday. Oil prices fell by more than four per cent in Tokyo, while Japan's Nikkei stock index rose three per cent.
The blockade of the Strait of Hormuz has had economic consequences worldwide, contributing to higher fuel prices that have fuelled inflation in the US and many other countries, while also disrupting supply chains for goods such as fertiliser used in food production well beyond the Middle East.
"What we're going to be able to do is drive down the cost of energy, not just now but for the long term, and create a real engine of prosperity in the Middle East," US vice president JD Vance told Fox News.
He said he planned to attend the signing ceremony, scheduled to take place in Geneva, and that Trump could also attend.
Israeli strike
Sunday saw fresh tensions as Trump blamed Israel for delaying the signing through its airstrike on Beirut, which he said had held up the agreement.
In a phone interview with US news outlet Axios, Trump expressed frustration with Israeli prime minister Benjamin Netanyahu, saying: "I was so pissed off. I let him know."
The previous Israeli strike on Beirut's suburbs triggered one of the strongest shocks to a ceasefire that has largely held since April, with Iran launching a retaliatory missile barrage and Israel responding with strikes.
Tehran has long insisted that any agreement to end the war must also address the parallel conflict in Lebanon, where Israel has been carrying out a campaign against Iran-backed Hezbollah.
(With inputs from agencies)
