Washington/Islamabad, 15 June  

President Donald Trump has announced that the US and Iran have finalised a deal to end their 107-day war, which triggered a global energy crisis. The peace agreement is scheduled to be signed on 19 June in Switzerland, according to Pakistan Prime Minister Shehbaz Sharif.

“The Deal with the Islamic Republic of Iran is now complete. Congratulations to all,” Trump said in a post on Truth Social on Sunday evening, easing pressure on the global energy markets. He said the deal would reopen the Strait of Hormuz and end the US naval blockade on Iranian ports.

“I hereby fully authorise the toll-free opening of theStrait of Hormuz and, simultaneously, authorise the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!” Trump said. However, in a subsequent post, Trump said the Strait of Hormuz will open on Friday after the official signing of the agreement.

The finalisation of the deal, on a day when Trump turned 80, capped a tumultuous week of war and diplomacy when the US carried out strikes on Iran and the US president, at the last minute, backed off a threat to take control of the Kharg Island, the oil export hub of the Islamic Republic. “This Great Deal will bring Peace and Security to the whole Region. Many presidents have tried to make Peace with Iran, and all have failed before me,” Trump said.

“The Leaders of the Region have, for the first time, found a President who can help them achieve real Peace. With the opening of the Strait upon the signing of the Deal on Friday, for purposes of mine removal, oil will flow on both ends again for the Region, and the World,” he said.

However, details of the deal were not immediately available.

Iran's deputy foreign minister Kazem Gharibabadi confirmed the agreement on state television but said Iran would not start implementing it until it was signed on Friday.

Pakistan, which has emerged as a key mediator in the US-Iran negotiations, facilitating contacts between Washington and Tehran and hosting diplomatic efforts aimed at ending the conflict, also confirmed the deal.

“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,” PM Shehbaz said in a post on X. He added that both sides have declared the "immediate and permanent termination of military operations on all fronts, including in Lebanon.”

Sharif thanked the US and Iran for their commitment to finding a diplomatic solution to the conflict. He also extended sincere appreciation to “our brothers in this mediation effort, the great leadership of the State of Qatar for their support in reaching this agreement. I would also especially thank the visionary leadership of the Kingdom of Saudi Arabia and the Republic of Turkiye for their immense contributions in this regard.”

“With the agreement now in place, mediators will facilitate a series of meetings this week. These pre-implementation discussions will lay the foundation for the technical talks and the official signing ceremony," he concluded.

He tagged Trump, Vice President JD Vance, Iranian PresidentMasoud Pezeshkian and Iranian Foreign Minister Abbas Araghchi in his post. Vance, American lawmakers and ministers in Pakistan have hailed the announcement of the historic peace deal.

In a televised phone interview with Fox News on Sunday, Vance called the agreement with Iran "a big moment for the United States of America," but noted that more work needs to be done. "This only happens, to be clear, if Iran delivers on their promise," Vance told Fox News. "So there's an approach here where we verify and where there are real benefits, so long as Iran meets their end of the obligation."

Indian-American Congressman Ro Khanna also welcomed the news and said it includes a provision for mutual respect of the US & Iran's sovereignty.

Deputy Prime Minister Ishaq Dar on Monday said Pakistan looks forward to signing the peace agreement between the US and Iran with the hope that it will bring peace to the region and beyond. Dar, who is also the Foreign Minister, said that development sends a reassuring message to the international community and provides much-needed confidence and stability to global markets and the world economy, particularly for developing countries that are most vulnerable to regional instability.

He also said that Pakistan was grateful for the support and sincere diplomatic efforts of “our brotherly countries, including Saudi Arabia, Qatar, Turkiye, Egypt, and others, as well as the United Nations and our international partners who remained closely engaged throughout this process and helped achieve this important milestone”.

The deal was negotiated through mediators that included Pakistan and Qatar, who initially got a two-week ceasefire agreement on 8 April. The ceasefire was extended till the completion of the talks. The US and Israel launched attacks on Iran on February 28, killing Supreme Leader Ayatollah Ali Khamenei and several top commanders.

Khamenei's son Mojtaba, who was elected as the new supreme leader, has not been seen in public since the war began.