USA and Iran reach agreement to end war, signing scheduled for Friday

(Patria) - American and Iranian officials said on Sunday they had agreed on a framework for an agreement to end their war, halt the US blockade of Iran and open the Strait of Hormuz, which could lead to lower energy prices as oil shipments resume through that key waterway.

"The agreement with the Islamic Republic of Iran is now complete," US President Donald Trump wrote on his Truth Social platform around 5:30 PM Eastern Time in Washington (21:30 GMT) on Sunday. The post came shortly after Pakistani Prime Minister Shehbaz Sharif, whose country acted as a mediator, announced that the agreement had been reached early Monday local time, Reuters reported this morning.

The agreement will be officially signed on Friday in Switzerland, Sharif wrote.

The precise terms were not immediately known. Sharif said in a post on social media platform X that the agreement calls for an "immediate and permanent cessation of military operations on all fronts, including Lebanon."

Lebanon was a sticking point in the negotiations, with Israel and Hezbollah ignoring calls from Trump and others in recent weeks to halt their mutual attacks.

Trump said the Strait of Hormuz, a major shipping route for global energy supplies that Iran has effectively closed for months, will open on Friday, and that he ordered an end to the US blockade of Iranian ports.

"Ships of the world, start your engines. Let the oil flow!" Trump wrote.

Oil prices fell following the news. Brent crude futures dropped four percent in early trading on Monday, while US West Texas Intermediate crude fell more than 4.6%.

Iranian Deputy Foreign Minister Kazem Gharibabadi said a more comprehensive agreement, including sanctions relief, would be negotiated during a sixty-day ceasefire. The fate of Iran's nuclear program will also be resolved in those later talks, sources previously told Reuters.

Thousands of people have been killed, mostly in Iran and Lebanon, since US and Israeli forces first attacked Iran on February 28. Iran attacked Israel and Gulf states hosting US bases and blocked the Strait of Hormuz, leading to a rise in global energy prices. US forces responded by blocking Iranian ports.

There was no immediate reaction from Israel to the announcement, which said it was not a party to the planned agreement between the US and Iran.

The war in Iran has become a political liability at home for Trump and his fellow Republicans in Congress, with public opinion polls showing Americans deeply frustrated by rising oil prices ahead of the November midterm elections. Trump also faced pressure from members of his own party who insist that Iran's nuclear program must be completely shut down.

Israeli attack

The agreement was reached despite an Israeli attack on Lebanon on Sunday that drew criticism from both Iran and Trump.

Iranian negotiator Mohammad Baqer Qalibaf earlier stated in a post on X that the attack on the southern suburbs of Beirut, which Israel claims targeted Iran-backed Hezbollah militants, showed that the United States lacks the "will and ability to fulfill its obligations."

Iran's Foreign Ministry said it holds the United States responsible for the attack. Iran warned of a "strong response," and its top military command said its "finger on the trigger" is ready to fire at the "heart of the enemy."

In a post earlier on Sunday, Trump said: "This morning's attack on Beirut should not have happened, especially on a special day when we are so close to a peace agreement with Iran."

Prime Minister Benjamin Netanyahu disagrees with Trump over US demands that Israel curb military operations in Lebanon to allow the United States to reach a deal with Iran.

Israel has said it will maintain freedom of action in Lebanon, while Iran made a full ceasefire there an important component of its demands.

Trump informed Netanyahu by phone on Sunday of progress toward a peace agreement, Israeli N12 reported, citing a senior official.

Terms of the agreement

A senior Iranian official earlier told Reuters that under the draft agreement, the US would agree to release $25 billion in frozen Iranian assets, and Iran would not produce or acquire nuclear weapons. He said Iran agreed to maintain the nuclear status quo, including not enriching uranium or expanding nuclear facilities, until a final deal is reached.

A US official, speaking before the agreement was announced, said the deal would lead to the dismantlement of Iran's nuclear program, with stocks of highly enriched uranium destroyed and removed. The senior Iranian official said the draft agreement would allow Iran, which denies seeking a nuclear bomb, to dilute its enriched uranium at home.

Qatari negotiators flew to Tehran on Sunday morning as part of efforts to finalize the agreement, a source familiar with the matter told Reuters.