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An agreement has been reached between the United States and Iran to end fighting and reopen the Strait of Hormuz, according to President Donald Trump and details of a draft memorandum of understanding released by Iranian state-affiliated media Sunday.

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U.S.-Iran deal to end war "now in place": Pakistani PM

The U.S. and Iran agreed to a deal to end hostilities on Sunday, Pakistani Prime Minister Shehbaz Sharif announced, with an official signing ceremony expected on Friday, and more detailed nuclear negotiations to follow.Trump confirmed the news and said he was now lifting the U.S. blockade, with Iran expected to open the Strait of Hormuz. Iran has yet to confirm it considers the deal to be in effect.Why it matters: The deal is expected to extend the ceasefire by 60 days, reopen the strait and launch nuclear talks after 107 days of war.The memorandum of understanding would mark the biggest diplomatic breakthrough of the war and buy time to settle the hardest questions over Iran's nuclear program.The agreement was expected to be signed electronically on Sunday after mediation by Pakistan and Qatar, but it's unclear if that has happened.Sharif said the signing ceremony would be Friday in Switzerland.The big picture: If it holds, the deal could ease the global energy shock the war set off. The agreement is designed to restore shipping through the Strait of Hormuz, which before the war handled about 20% of global oil and liquefied natural gas. But it leaves key nuclear issues to be negotiated over the next two months.Reopening the whole strait may not be immediate in practice. Mine-clearing, repairing infrastructure and guaranteeing security could take time before a full return to pre-war shipping volumes.Breaking it down: The agreement calls for the U.S. and Iran to negotiate over Iran's nuclear enrichment and the disposal of its highly enriched uranium during the 60-day window.The U.S. will commit to discuss sanctions relief and the release of frozen Iranian funds, with relief expected to be tied to Iran's compliance.The ceasefire includes fighting between Israel and Hezbollah in Lebanon, which flared up again on Sunday.State of play: The apparent agreement comes after a volatile final stretch. Israel struck Hezbollah targets in Beirut hours before the expected signing, prompting Iranian threats to walk away from the deal.What they're saying: "The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines," Trump wrote on Truth Social.That came minutes after Sharif posted on X that "the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED. Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon."Sharif added that the deal was "now in place."What's next: Sharif said Pakistan and the other mediators would "facilitate a series of meetings this week," to be followed by technical talks.The sides have given themselves 60 days to reach a technical agreement on how to downblend Iran's highly enriched uranium and both freeze and monitor Iran's nuclear program going forward. That's a tall order given how difficult it was to reach the much less detailed memorandum of understanding. The U.S. side insists Iran is incentivized to reach a final agreement because sanctions relief and access to frozen funds depend on progress on the nuclear front. Some hawks in the U.S. and Israel worry there will never be a final deal and the war will end with the nuclear questions unresolved.

US and Iran Agree to Deal Halting War That Shook Middle East

The US and Iran said they reached an interim agreement to reopen the Strait of Hormuz, halting a war that killed thousands of people and setting the stage for 60 days of negotiations on the fate of the country’s nuclear program.

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