The United States and Iran have reached an agreement to end their active conflict and reopen the vital Strait of Hormuz. This major development, confirmed by both President Donald Trump and Iranian officials, marks a significant shift in a war that has gripped the region since February 28. As NBC News reported, the announcement came directly from the president. “The Deal with the Islamic Republic of Iran is now complete,” Trump said in a post on Truth Social. “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!” Unlike the last few times, when Trump strongly suggested or said that a deal was imminent and Iran always denied or said that no final deal existed, this the long awaited news has been confirmed by both sides. According to The Guardian, world leaders gathered at the G7 summit in France are already working to ensure this fragile agreement does not fall apart. At the summit, Trump noted that the deal is signed, the strait is already partially open, and he had hopes for the economic impact, stating, “I think a lot of great things are going to happen in the Middle East right now. And very importantly, the oil is plummeting down and the stock market is shooting up like a rocket today.” The deal is due to be signed on the 19th after technical discussions Per reports, the official signing ceremony is slated for Friday in Switzerland. Vice President JD Vance is expected to attend, though the president may also be present. Vance described the agreement as a “new leaf” during a recent appearance on Fox News. He noted that while it will take time to fully realize the benefits of the peace, it represents a major step forward. The agreement itself is reportedly built on a 14-point memorandum of understanding. Key components include an immediate and permanent ceasefire, the withdrawal of U.S. forces around Iran, and the eventual lifting of oil and financial sanctions. A major focus of the deal is the nuclear question. At the G7 summit, Pres. Trump touted his new deal with Iran. Exact details haven't been released, and Iran and the US are giving conflicting descriptions of what's in the agreement. @RachelvScott reports. https://t.co/NmAwXI3VuE pic.twitter.com/sDix4KIEUV— World News Tonight (@ABCWorldNews) June 15, 2026 As Trump stated at the G7 summit, “The main thing is that Iran will not have a nuclear weapon. They fully agreed to that with strong policing powers, and they won’t have a nuclear weapon, which is what it was all about.” The Guardian also reported that Macron offered to deploy a Franco-British maritime taskforce to help clear the strait, and “ensure the reopening of the strait is peaceful.” The outlet noted that the task force plan is partially conceived to mollify Trump’s anger over the EU’s initial refusal to join his plan to open the strait during the war. Despite the excitement surrounding the announcement, NBC noted that the situation on the ground remains complex. There have been reports of ongoing military actions, including Israeli strikes in Lebanon, which have drawn criticism from several parties. Per NBC, Trump himself stated on Truth Social that these strikes “should not have happened, particularly on a special day when we are so close to a Peace Deal with Iran.” Israeli Defense Minister Israel Katz on the other hand, maintained a firm stance, warning that Israeli forces intend to remain in seized territories in Lebanon, Gaza, and Syria indefinitely. Following intensive talks, we are pleased to announce 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…— Shehbaz Sharif (@CMShehbaz) June 14, 2026 The economic implications of the deal are already visible. NBC reported that Oil prices saw a sharp decline following the news, with U.S. crude falling more than 4.5% to $80 per barrel. Brent crude also saw a significant drop. While these price shifts offer some relief, shipping companies have warned that it will likely take months for trade routes to return to normal operations. The Guardian stated that technical negotiations are set to begin later this week, led by the U.S. side with Vice President Vance. These talks will tackle the remaining thorny issues, including the specifics of the nuclear program and the unfreezing of Iranian assets. While some initial reports suggested funds might be released, U.S. officials have clarified that as of now, no unfrozen assets have been released. Any such move will be strictly tied to Iran meeting its commitments. The international community has largely welcomed the news. U.N. Secretary-General António Guterres called it a “critical step towards the peaceful settlement of the conflict” on X. Similarly, French President Emmanuel Macron noted on X, “The resumption of maritime traffic, without restrictions or tolls, is an essential condition for regional stability and the global economy.” After helping negotiate these terms, Qatar’s Foreign Affairs Ministry said it considers the agreement as “an important step towards consolidating sustainable peace and promoting economic growth regionally and internationally.”