WASHINGTON — The United States and Iran have signed a preliminary agreement aimed at ending nearly four months of conflict and reopening the Strait of Hormuz, officials from both countries said on Monday, in a diplomatic breakthrough that eased concerns over disruptions to global energy supplies.
Senior U.S. officials said a memorandum of understanding had been signed by U.S. President Donald Trump, Vice President J.D. Vance and Iranian Parliament Speaker Mohammad Bagher Qalibaf. A formal signing ceremony is scheduled to take place in Switzerland on June 19, according to U.S. officials and statements from mediators involved in the negotiations.
The agreement calls for a halt to military operations and the gradual reopening of the Strait of Hormuz, a key shipping route for global oil and liquefied natural gas exports. U.S. officials said maritime traffic through the waterway is expected to increase progressively in the coming weeks rather than return immediately to normal levels.
“The Deal with the Islamic Republic of Iran is now complete,” Trump wrote on his Truth Social platform on Sunday, announcing the framework agreement. Iranian officials also confirmed that an accord had been reached, while emphasizing that further negotiations would be required on unresolved issues, including Tehran’s nuclear program.
Pakistan, which helped mediate the talks, said both sides had agreed to end hostilities and move toward implementation of the accord. Pakistani Prime Minister Shehbaz Sharif announced that negotiators had finalized the framework after weeks of diplomatic efforts involving regional and international intermediaries.
Despite the agreement, officials acknowledged that several major issues remain unresolved. According to U.S. and Iranian statements, negotiations concerning Iran’s nuclear activities, sanctions and longer-term security arrangements will continue during a subsequent diplomatic process. Details of those discussions remain unclear.
Financial markets reacted quickly to the announcement. Oil prices fell sharply as traders anticipated the restoration of shipping through Hormuz, which normally handles a significant share of global energy exports. Brent crude and U.S. crude futures both declined, reversing part of the risk premium that had accumulated during the conflict.
Regional governments welcomed the development. The United Arab Emirates called for full implementation of the agreement and stressed the importance of ensuring freedom of navigation through the Strait of Hormuz.
As of Tuesday, officials from both countries said preparations were underway for the formal signing ceremony, while shipping operators monitored conditions in the Gulf. Authorities said implementation of the agreement would proceed in phases, and further negotiations were expected in the coming weeks.
