President Donald Trump announced that the United States and Iran have reached a preliminary peace agreement designed to end months of conflict and begin negotiations on a broader long-term settlement. Iranian officials also confirmed that both sides had finalized a memorandum of understanding, describing it as the first step toward restoring stability and reducing tensions in the region.
According to statements from both governments, the agreement calls for an immediate halt to military operations and outlines a framework for reopening the Strait of Hormuz while the United States begins lifting its naval blockade of Iranian ports. The memorandum also establishes a 60-day negotiating period during which officials will seek to resolve outstanding issues, including Iran’s nuclear program and the terms of a comprehensive agreement.
Trump announced the breakthrough on his Truth Social platform, declaring that the agreement had been completed and describing it as a major diplomatic achievement. He said the reopening of the Strait of Hormuz would restore the flow of global energy supplies and contribute to greater stability across the Middle East. Iranian officials thanked Pakistan and Qatar for helping facilitate negotiations that ultimately led to the framework agreement.
International leaders welcomed the development. German Chancellor Friedrich Merz described the agreement as an important diplomatic breakthrough that could strengthen regional security and support global economic stability if fully implemented. U.S. Ambassador Michael Waltz also praised the agreement, saying it reflected the administration’s efforts to combine diplomacy with military deterrence while preventing Iran from obtaining a nuclear weapon.
Financial markets responded quickly to the announcement. Oil prices fell sharply as investors anticipated that reduced tensions would lower the risk of supply disruptions through the Strait of Hormuz, one of the world’s most important energy shipping routes. Brent crude and U.S. West Texas Intermediate both recorded significant declines as traders reacted to expectations that maritime traffic would gradually return to normal.
Although the agreement represents a significant diplomatic milestone, many of the most difficult issues remain unresolved. The memorandum serves as a preliminary framework rather than a final peace treaty, with negotiators expected to spend the coming weeks addressing Iran’s nuclear program, sanctions, and other long-standing disputes. Officials from both countries have emphasized that the success of the agreement will depend on each side fulfilling its initial commitments before a comprehensive settlement can be finalized.