U.S. and Iranian officials said on Sunday they have agreed on a deal to end their war, halt the U.S. blockade of Iran and reopen the Strait of Hormuz, possibly leading to lower energy prices once oil shipments resume through the critical waterway.
If implemented, the agreement between the United States and Iran is expected to restore one of the world’s most critical energy shipping routes and ease pressure on global oil markets after weeks of disruption.
Officials said the deal includes an immediate ceasefire and a framework for further negotiations on security and nuclear-related issues.
A spokesperson for UN Secretary-General António Guterres said the agreement marks a critical step toward a peaceful settlement of the conflict. The UN welcomed the deal, highlighting the ceasefire, the reopening of the Strait of Hormuz, and continued negotiations.
In a joint statement, Britain, France, Germany and Italy said Iran must never acquire a nuclear weapon. The four countries expressed readiness to work with the United States, Iran and the IAEA to support this goal and urged swift implementation of the agreement.
Prime Minister Keir Starmer called the deal a significant step toward ending the conflict and restoring stability. He emphasised the need for freedom of navigation in the Strait of Hormuz and reiterated that Iran must not obtain nuclear weapons.
He stated: “Iran must never have a nuclear weapon… toll-free freedom of navigation must now be restored in the Strait of Hormuz.”
President Emmanuel Macron welcomed the agreement as the result of a major diplomatic effort involving multiple partners.
"This agreement must allow for the urgent and unconditional reopening of the Strait of Hormuz, which the international mission established with the United Kingdom is ready to support," he said.
Chancellor Friedrich Merz called the agreement a diplomatic breakthrough that could strengthen global economic stability and security in the Middle East.
European Council President António Costa welcomed the deal and expressed hope for an end to the conflict. He also stressed the importance of restoring freedom of navigation in the Strait of Hormuz.
Prime Minister Anthony Albanese welcomed the agreement, saying Australia has long supported de-escalation. He stressed the need for restraint and continued diplomatic engagement to secure a lasting peace.
Chancellor Christian Stocker urged all parties to fully implement the agreement, including reopening the Strait of Hormuz. He said the deal creates an opportunity for broader negotiations on regional stability, including Iran’s nuclear and missile programmes.
President Recep Tayyip Erdoğan welcomed the agreement as a positive development for regional peace and stability. He urged restraint, warning against rhetoric or actions that could undermine the implementation process and calling for vigilance against possible sabotage.
Foreign Minister Hakan Fidan also welcomed the agreement, describing it as an important step toward lasting peace and calling for continued constructive negotiations.
Qatar welcomed the memorandum of understanding between the United States and Iran, including provisions on freedom of navigation in the Strait of Hormuz, calling it an important step toward lasting peace and economic growth.
The Foreign Ministry praised both sides for resolving disputes through dialogue and commended Pakistan and other regional and international partners for their role in de-escalation and facilitating the agreement.
Pakistan welcomed the announcement of the peace deal between the United States and Iran, reached after intensive talks, and the decision to end military operations on all fronts.
It also praised the mediation efforts of Qatar, Saudi Arabia and Türkiye, and noted that the agreement paves the way for further discussions ahead of the official signing in Switzerland on 19 June.
Japan "strongly hopes" that "free and safe navigation through the Strait of Hormuz will be ensured in practice, and that a final agreement on Iran's nuclear issue and other matters will be reached as soon as possible."
Foreign Minister Winston Peters called the agreement a constructive step toward reducing tensions and improving stability in a region vital to global economic security. He emphasised diplomacy as the key tool for resolving long-standing issues.
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The U.S. says it has launched strikes on Iran after alleged attacks on three commercial vessels in the Strait of Hormuz. Washington described the action as a response to threats against civilian shipping and a breach of the ceasefire.
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The U.S. military said on Wednesday it launched fresh strikes on Iran to keep the Strait of Hormuz open to shipping, triggering Iranian attacks on Kuwait and Bahrain in the latest escalation to derail efforts to end the war.
The U.S. military said on Wednesday it launched fresh strikes on Iran to keep the Strait of Hormuz open to shipping, triggering Iranian attacks on Kuwait and Bahrain in the latest escalation to derail efforts to end the war.
U.S. President Donald Trump said on Wednesday that the memorandum of understanding signed with Iran to end the conflict was "over", adding he did not want to engage with Tehran, calling the Iranian leadership "sick people".
Wednesday marks the fifth day of the massive public farewell funeral processions of its former Supreme Leader Ayatollah Seyed Ali Khamenei, who was killed in a U.S.-Israeli air strike in February.
The U.S. says it has launched strikes on Iran after alleged attacks on three commercial vessels in the Strait of Hormuz. Washington described the action as a response to threats against civilian shipping and a breach of the ceasefire.
At least two commercial vessels were damaged by missile strikes near the Strait of Hormuz late on Monday (6 July).
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