President Donald Trump announced Sunday that the United States and Iran have reached a peace deal, marking a potential end to months of escalating tensions between the two nations.
Iran’s Supreme National Security Council confirmed the agreement, stating that Tehran and Washington finalized a memorandum of understanding aimed at formally ending the conflict. The council said all military operations across multiple theaters, including those involving Iranian-backed forces in Lebanon, will cease “immediately and permanently” beginning Sunday night.
What the Deal Includes
Under the reported framework, the U.S. will fully lift its naval blockade of Iran, effective immediately, according to Iran International. The memorandum is scheduled to be formally signed on June 19 and will launch a 60-day negotiating period focused on Iran’s nuclear program and broader long-term agreements.
Negotiations on a comprehensive agreement will begin only after both sides fulfill commitments outlined in the initial memorandum. Iranian officials thanked Pakistan and Qatar for their roles in facilitating the talks.
The Presidential Response
“The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!” Trump wrote on his Truth Social platform, adding that he authorized the opening of the Strait of Hormuz and removal of the naval blockade.
“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. He noted that the agreement would allow oil to flow through the region and globally following mine-removal operations.
International Reaction
German Chancellor Friedrich Merz praised the agreement as a diplomatic breakthrough. “I welcome the agreement between the U.S. and Iran and congratulate President Trump and the Iranian side on this diplomatic breakthrough,” Merz said on X. “This can pave the way for a reinvigorated global economy and a more secure Middle East.”
U.S. Ambassador Michael Waltz also supported the deal, stating that Trump secured an agreement protecting American security. “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.
Market Impact
Oil prices fell sharply following the announcement. Brent crude futures dropped $3.58, or 4.1%, to $83.75 per barrel, while U.S. West Texas Intermediate crude fell $4.01, or 4.7%, to $80.87 per barrel by Monday morning, reaching their lowest levels since March.
The decline reflected trader expectations that reduced Middle East tensions would decrease the risk of disruptions to global energy supplies. Both major benchmarks had already fallen more than 3% on Friday as markets anticipated an agreement.