America and Iran agree to cease hostilities, restore Strait of Hormuz access

The United States and Iran have announced a deal to bring an end to the war in the Middle East, including in Lebanon, and to reopen the crucial Strait of Hormuz, although details regarding Tehran's nuclear program remain scarce.

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This agreement is set to be signed on Friday in Switzerland, according to Washington and Islamabad, marking a significant breakthrough in efforts to end the months-long war that has resulted in thousands of casualties and disrupted energy markets.

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US President Donald Trump stated that the Strait of Hormuz, a vital passage for global oil supplies, will be reopened following the signing of the deal, and he expressed his enthusiasm on social media, saying "The Deal with the Islamic Republic of Iran is now complete" as he celebrated his 80th birthday.

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Iran's Deputy Foreign Minister Kazem Gharibabadi announced on television that the deal would immediately end the war between the countries and that talks would be held within two months to secure a "final agreement", while also thanking various leaders for their support in the mediation effort.

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Pakistani Prime Minister Shehbaz Sharif declared that both sides have agreed to an immediate and permanent cessation of military operations on all fronts, including in Lebanon, and he extended his gratitude to the leaders of Qatar, Saudi Arabia, and Turkey for their roles in the mediation process.

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Despite the announcement, the specifics of the agreement remain unclear, including the fate of Iran's nuclear program, which has been a major point of contention in the negotiations.

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According to Iran's Mehr news agency, the US has agreed to release $12 billion in frozen assets to Iran prior to the start of negotiations, and a reported 14-point "memorandum of understanding" outlines the release of $24 billion in frozen Iranian assets during a 60-day negotiation period.

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US President Donald Trump indicated in an interview with the New York Times that Washington is still negotiating the terms of Iran's nuclear enrichment suspension, suggesting that he may accept a 15-year suspension, but emphasized that he prefers not to negotiate through the press.

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The announcement of the deal has been met with international relief and optimism for a lasting end to the conflict, with UN Secretary-General Antonio Guterres describing it as a "critical step" toward resolving the war in the Middle East.

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The United Kingdom, France, Germany, and Italy have expressed their willingness to lift sanctions imposed on Iran and work together with the US, Iran, and regional partners to "seize this moment, maintain momentum and achieve a long-term diplomatic settlement".

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The news has also brought relief to financial markets, with oil prices dropping by more than four percent in Tokyo and Japan's Nikkei stock index rising by three percent on Monday.

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US Vice President JD Vance stated that the deal will help drive down energy costs and create a foundation for prosperity in the Middle East, and he announced plans to attend the signing of the peace deal in Geneva, with the possibility that President Trump may also attend.

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The day's events were marked by a dramatic turn of events, with Trump earlier expressing anger over an Israeli airstrike on Beirut, which he claimed had delayed the agreement, and he criticized Israeli Prime Minister Benjamin Netanyahu in a phone interview with Axios.