US President Donald Trump has announced that a peace agreement between the United States and Iran has been finalized, declaring an end to months of hostilities and authorizing the reopening of the strategically vital Strait of Hormuz. In a post on his Truth Social platform, Trump stated that the deal with the Islamic Republic of Iran was now complete and ordered the immediate removal of the US naval blockade that had disrupted maritime traffic in the region.
Key Announcement
“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. Let the oil flow!” Trump wrote. This announcement represents the strongest indication yet that Washington and Tehran have reached a breakthrough after months of conflict that rattled global energy markets and raised fears of wider regional escalation.
Strategic Importance
The Strait of Hormuz is one of the world’s most critical shipping routes, with approximately one-fifth of global oil supply passing through it, making any disruption a major concern for energy security and prices worldwide. Trump’s announcement came after reports of intensive mediation efforts involving regional stakeholders, with claims that both sides had agreed in principle to end active military operations. Reports also indicate that an official signing ceremony is expected to take place in Switzerland, where the agreement will be formally presented.
Draft Terms
While Trump described the deal as complete, several details remain under negotiation, particularly around verification mechanisms, sanctions relief, and Iran’s nuclear program. According to draft details circulating from negotiations and reports, the proposed agreement includes:
- Immediate reopening of the Strait of Hormuz to commercial shipping
- Removal of the US naval blockade on Iranian maritime routes
- A temporary ceasefire framework to halt ongoing hostilities
- A 60-day negotiation window for a comprehensive final agreement
- A freeze on Iran’s nuclear expansion activities during talks
- Commitments tied to limits on uranium enrichment levels
- No new US sanctions on Iran during the negotiation period
- Temporary easing of oil export restrictions on Iran
- Release of frozen Iranian assets under monitored conditions
- Future structured talks on nuclear compliance and regional security arrangements
Market Reactions
The announcement triggered immediate reactions in global markets, with oil prices reportedly falling as traders responded to expectations of improved supply flow through the Strait of Hormuz. Stock markets also saw positive movement following the development. However, Iranian authorities have not fully endorsed all aspects of the US president’s statement, with officials signaling that parts of the deal still require clarification and formal approval. Despite this, Trump’s declaration represents one of the most significant developments in US-Iran relations in recent years, with potential implications for global energy stability, Middle East geopolitics, and international diplomacy.
