Trump and Iran sign pact to reopen Hormuz

initial U.S.-Iran – President Trump and Iran’s leaders say they’ve reached an initial agreement meant to end more than three months of war and reopen the Strait of Hormuz. The deal extends the U.S.-Iran ceasefire for 60 days ahead of a formal signing in Switzerland on Friday, but

President Trump sounded convinced it was done before the ink had even dried.

On Sunday evening, he posted on social media that “The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!” By Monday. during the G7 summit meeting in France. he told French President Emmanuel Macron that “the deal’s all signed. ” adding that the memorandum of understanding’s details would be released “probably pretty soon. ” likely “after sometime after Friday. ” and “in the very near future.”.

For the White House, the message was simple: after more than three months of war that set the Middle East aflame and rattled global markets, the pressure is easing—and one of the world’s most critical shipping chokepoints may soon reopen.

Iran’s Supreme National Security Council said the agreement was reached “following a difficult and intensive period of negotiations lasting several months.” It framed the moment as progress, not compromise.

The market reaction suggested investors were willing to believe the first draft could hold. Stocks rallied, with the S&P 500 up 1.9%, while oil prices dropped by almost 5%. Trump celebrated the prospect of relief by writing, “Ships of the World, start your engines. Let the oil flow!”

The agreement is scheduled to be formally signed Friday in Switzerland. The core purpose is to end more than three months of war in Iran and reopen the Strait of Hormuz, where the flow of oil has been choked by a standoff between the U.S. and Iran.

Under the terms described so far, the U.S. and Iran would end sporadic attacks that have continued even after a ceasefire. The changes are also meant to ripple outward: the Israel-Hezbollah fighting in Lebanon should stop. and Iran and the U.S. would lift their dueling blockades of the Strait of Hormuz—blockades that have prevented oil from leaving the Gulf and pushed prices higher around the world.

But the initial deal also makes clear why diplomacy has not ended the danger; it largely postpones the hardest decisions rather than solving them.

While the memorandum of understanding was not immediately released, U.S. and Iranian officials and media reports have widely described its outlines. The agreement extends the current U.S.-Iran ceasefire for 60 days. with the stated goal of reaching a permanent end to the war in the next round of talks.

The most unresolved issues sit at the center of every American-Iranian negotiation: Iran’s nuclear program. frozen Iranian assets. and U.S. and international sanctions. Trump’s initial posts did not mention the nuclear question—even though he previously cited it as a main reason for launching the war in February.

In an interview with The New York Times, Trump said Iran would be permitted low-level nuclear enrichment. In the past, he has repeatedly called for dismantling Iran’s entire nuclear program.

Iran, meanwhile, wants billions of dollars in assets frozen abroad and the lifting of U.S. and international sanctions. Those are not details that can be wished away in a short extension.

Officials have not clarified what happens if negotiators fail to reach a broader agreement before the 60-day window expires. Trump told The New York Times that if no deal is reached. he could relaunch attacks on Iran or make the U.S. “the guardian of the Middle East” in return for 20% of the region’s revenues.

As the diplomats head toward Friday’s signing ceremony, mediators have already laid out what they hope comes next. Pakistan’s prime minister. Shehbaz Sharif. who played a key mediating role in the negotiations. said an official signing ceremony will take place on Friday in Switzerland. Trump confirmed the same timetable in a second Truth Social post Sunday evening.

Iran’s Deputy Foreign Minister Kazem Gharibabadi, quoted by Iranian state media in a post on Telegram, said Iran sees the deal as a victory.

For Iran, the Strait of Hormuz has been effectively controlled since shortly after the war began on Feb. 28, virtually shutting down the vital passage for around 20% of the world’s oil. In response, the U.S. blockaded Iranian ports.

The U.S. says Iran has laid mines in the strait. Trump said Sunday that the strait will be opened for mine removal after the deal is signed on Friday.

Yet the agreement is also tangled in the reality of Lebanon’s front lines.

Iran wanted an end to the fighting between Israel and Hezbollah in Lebanon as a condition for a deal with the U.S. Israel’s position did not move as far as the ceasefire language suggests.

Israeli Defense Minister Israel Katz said Monday the country would keep troops in southern Lebanon indefinitely. Israel and Hezbollah have continued to fight daily despite an official ceasefire.

On Sunday, Hezbollah fired drones into northern Israel, according to the Israeli military. Israel responded with a deadly airstrike on a Hezbollah stronghold in the southern suburbs of Beirut.

Trump criticized the Israeli action. “This morning’s attack on Beirut should not have happened, particularly on a special day when we are so close to a peace deal with Iran,” he wrote on Truth Social, hours before he announced the agreement.

Trump and Israeli Prime Minister Benjamin Netanyahu speak often by phone. but they have been at odds on several occasions recently. and Israel was not directly involved in the negotiations with Iran. Israeli officials have said previously that they would support an agreement. but they had many reservations about the terms being discussed.

Leaders across the Middle East and Europe welcomed the initial pact, even as its details remained incomplete.

Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani—who helped mediate the deal alongside Pakistan—praised the breakthrough, thanked Pakistan, and urged “positive and constructive” negotiations ahead.

European leaders from the U.K., France, Germany, and Italy welcomed the deal, calling for swift implementation. They also called for the urgent reopening of the Strait of Hormuz and reaffirmed support for Lebanon’s sovereignty and stability.

French President Emmanuel Macron, speaking in a video on Instagram as G7 leaders prepared to meet in Evian, said talks would focus on the long-term reopening of the Strait of Hormuz and the wider diplomatic opportunity created by the agreement.

U.N. Secretary-General António Guterres called the deal a “critical step.” His spokesperson, Stéphane Dujarric, said he hopes parties will build on the momentum and “redouble their efforts towards a final resolution of the conflict.”

The sequence now is clear: a 60-day extension meant to cool the region’s immediate fires. a formal signing set for Friday in Switzerland. and a second negotiation phase where the nuclear future and the fate of frozen assets could determine whether this first breakthrough becomes something lasting—or another pause before the next crisis.

United States Iran deal Strait of Hormuz Trump ceasefire Switzerland signing Friday nuclear enrichment frozen Iranian assets Israel Hezbollah ceasefire G7 Macron