Key facts
- US and Iran have reached a ceasefire deal, ending the blockade in the Strait of Hormuz.
- A formal signing ceremony is scheduled for June 19 in Switzerland.
- The deal reportedly includes limits on Iran's nuclear enrichment and the release of frozen assets.
- Stock markets and US stock futures surged following the announcement, while Brent crude oil prices fell.
- US President Donald Trump stated the agreement assures Iran can only enrich uranium for non-military purposes.
- Israeli Prime Minister Benjamin Netanyahu was criticized by President Trump for actions that nearly derailed the agreement.
President Donald Trump announced that a deal has been reached with Iran, effectively ending hostilities and lifting Washington's naval blockade in the Strait of Hormuz. The agreement, described as a 'peace deal' by Pakistan's Prime Minister Shehbaz Sharif, is set to be formally signed in Switzerland on June 19.
According to reports from Iran's Mehr news agency, the draft agreement includes a permanent cessation of hostilities, the complete lifting of the naval blockade within 30 days, and a US commitment to withdraw forces around Iran. It also mentions the suspension of sanctions on Iranian oil sales and reaching a final agreement on nuclear issues within 60 days, during which half of Iran's frozen assets would be released. Discussions concerning Iran's missile program and its support for resistance groups have reportedly been removed from the negotiating agenda.
President Trump stated to The New York Times that the final deal would limit Iran's uranium enrichment to low levels for non-military purposes, assuring it could 'never be used by the military.' He also indicated that full sanctions relief would be contingent on Iran not killing anti-government protesters, a requirement not explicitly in the memorandum of understanding (MOU).
Market reactions were swift, with stock markets across the Asia-Pacific region surging. Japan's Nikkei 225 rose over 5 percent, South Korea's Kospi jumped 5.7 percent, and US stock futures for the S&P 500 and Nasdaq Composite climbed. Conversely, Brent crude oil prices fell more than 4 percent to around $83.70 per barrel.
US Secretary of State Marco Rubio and US envoy Mike Waltz praised President Trump for securing the deal. However, Democratic lawmakers expressed cautious optimism while demanding congressional oversight. Former Vice President Mike Pence voiced skepticism, stating that 'no deal is better than a bad deal' unless Iran dismantles its nuclear and missile programs and ceases support for regional groups. President Trump also criticized Israeli Prime Minister Benjamin Netanyahu, suggesting he should be thankful for the deal and threatening renewed attacks on Iran if a final agreement was not reached.