US and Iran announce a deal to end the war, reopen Strait of Hormuz

President Trump and Iran declared they've reached an agreement intended to end more than three months of war in Iran and reopen the Strait of Hormuz.

The deal, scheduled to be formally signed Friday in Switzerland, marks a major breakthrough in the conflict that set the Middle East aflame and shook the global economy.

"The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!" Trump wrote on social media on Sunday evening.

Iran's Supreme National Security Council said the deal was reached "following a difficult and intensive period of negotiations lasting several months."

If the agreement works as planned, several key developments are supposed to happen almost immediately.

The U.S. and Iran will end the sporadic attacks that have been taking place despite a ceasefire. The Israel-Hezbollah fighting in Lebanon should stop. And Iran and the U.S. will lift their dueling blockades of the Strait of Hormuz that has prevented oil from leaving the Gulf, driving up prices across the world.

"Ships of the World, start your engines. Let the oil flow!" Trump said in his post.

However, the memorandum of understanding between the U.S. and Iran did not resolve several critical issues that must still be worked out in another round of negotiations.

The text of the deal was not immediately released, but has been widely described by U.S. and Iranian officials and in media reports.

The agreement extends the current U.S.-Iran ceasefire for 60 days. The goal in upcoming talks will be a permanent end to the war.

The fate of Iran's nuclear program will be negotiated, but remains unresolved for now. Trump made no mention of the nuclear issue in his initial posts, though this is the main reason he cited for launching the war in February.

In an interview with The New York Times, Trump said Iran would be permitted low-level nuclear enrichment. In the past, he has repeatedly called for the dismantling of Iran's entire nuclear program.

Also, Iran wants billions of dollars in its assets that have been frozen abroad, and the lifting of U.S. and international sanctions.

These issues will be difficult to resolve, and it's not clear what happens if agreement is not reached during the 60 days of negotiations.

Trump told The New York Times that if no deal was reached, he could relaunch attacks on Iran or make the U.S. "the guardian of the Middle East" in return for 20% of the region's revenues.

Signing set for Friday

Pakistan's prime minister, Shehbaz Sharif, who played a key mediating role in the negotiations, said an official signing ceremony will take place on Friday in Switzerland. Trump said the same in a second Truth Social post Sunday evening.

Iran Deputy Foreign Minister Kazem Gharibabadi, quoted by Iranian state media in a post on Telegram, said Iran sees this deal as a victory.

Iran has effectively controlled the Strait of Hormuz since shortly after the war began on Feb. 28, virtually shutting down the vital passage for around 20 percent of the world's oil. The U.S. blockaded Iranian ports in response.

The U.S. says Iran has laid mines in the strait. Trump said Sunday the strait will be opened for mine removal after the deal is signed Friday.

Iran made an end to fighting between Israel and Hezbollah in Lebanon a condition for a deal with the U.S.

However, Israeli Defense Minister Israel Katz said Monday the country would keep troops in southern Lebanon indefinitely.

Israel and Hezbollah have continued to fight daily despite an official ceasefire. On Sunday, Hezbollah fired drones into northern Israel, according to the Israeli military.

Israel responded with a deadly airstrike on a Hezbollah stronghold in the southern suburbs of Beirut.

Trump criticized the Israeli action.

"This morning's attack on Beirut should not have happened, particularly on a special day when we are so close to a peace deal with Iran," Trump wrote on Truth Social, hours before he announced the agreement with Iran.

Trump and Netanyahu speak often by phone, but they've been at odds on several occasions recently and Israel was not directly involved in the negotiations with Iran.

Israeli officials have said previously that they would support an agreement, but they had many reservations about the terms that were being discussed.

Leaders in the Middle East and Europe praised the deal.

Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, who helped mediate the deal alongside Pakistan, praised the breakthrough. He thanked Pakistan, urging "positive and constructive" negotiations ahead.

European leaders from the U.K., France, Germany and Italy also welcomed the deal, calling for swift implementation. They also called for the urgent reopening of the Strait of Hormuz and reaffirmed support for Lebanon's sovereignty and stability.

French President Emmanuel Macron, speaking in a video on Instagram as G7 leaders prepare to meet in Evian, said talks would focus on the long-term reopening of the Strait of Hormuz and the wider diplomatic opportunity created by the agreement.

U.N. Secretary-General António Guterres called the deal a "critical step," with his spokesperson Stéphane Dujarric saying he hopes parties will build on the momentum and "redouble their efforts towards a final resolution of the conflict."

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