CNBC World6/14/2026World1 min read

US and Iran Agree to End War, Pakistan PM Announces

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Pakistan's Prime Minister announced a peace deal between the U.S. and Iran to end their nearly four-month war.
The deal includes lifting U.S. oil sanctions and Iran reopening the Strait of Hormuz.
A signing ceremony is set for June 19 in Switzerland.

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Why It Matters

The U.S. and Iran have been engaged in a nearly four-month war, with a fragile ceasefire in place as diplomatic efforts were made to end the conflict. The Strait of Hormuz has been effectively closed since the conflict began.

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The U.S. and Iran have agreed on a deal to bring their nearly four-month war to an end, with both sides declaring the immediate and permanent termination of military operations on all fronts, including in Lebanon, Pakistan Prime Minister Shehbaz Sharif said on Sunday.

"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," Sharif said in a post on X. Pakistan has served as a mediator between the two countries.

"The official signing ceremony will be on Friday, 19 June in Switzerland," Sharif said.

U.S. President Donald Trump confirmed that a deal had been reached soon after the prime minister's announcement. In a post on Truth Social, the president said: "The deal with the Islamic Republic of Iran is now complete."

"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," Trump wrote.

On Friday, Iranian state media reported that a 14-page draft memorandum had been drawn up, outlining terms of a proposed peace deal that would include the U.S. lifting oil sanctions and Iran committing to reopening the Strait of Hormuz within 30 days.

The deal follows weeks of mixed messaging from both Washington and Tehran over the conflict's trajectory, with a fragile ceasefire in place as diplomatic efforts were made to end the war.

The Strait of Hormuz, a critical shipping route in the Middle East, has effectively been closed since the conflict began in late February. The blockade of the waterway has created severe supply constraints for various goods, including oil, gas and fertilizers, sparking price rises and fueling concerns about a return to stagflation.