TEHRAN, Jun 15: The United States and Iran announced a deal to end the Middle East war on all fronts and reopen the vital Strait of Hormuz, sparking relief Monday after months of deadly violence and global economic chaos.
The US and mediator Pakistan said the agreement was to be signed on Friday in Switzerland, with Saudi Arabia and other regional powers hailing the deal while ordinary Iranians voiced hope it could restore calm.
Few details were made public, but US President Donald Trump said Hormuz, a key conduit for global oil supplies that Iran has blockaded since the start of the war, would reopen.
"The Deal with the Islamic Republic of Iran is now complete," US President Donald Trump said on Sunday. "Ships of the World, start your engines. Let the oil flow!"
Soon afterwards, Iran's Deputy Foreign Minister KazemGharibabadi said in televised comments that the deal put an "immediate end" to the war and that they would hold talks within two months to seek a "final agreement."
Iran's military hailed the agreement as a victory, claiming that it had "humiliated" the US and Israel in the war that began on February 28 with their massive campaign of airstrikes.
Israel's Defence Minister Israel Katz, however, said Israeli forces would remain in Lebanon, Syria and Gaza indefinitely, despite the announcement that the deal would apply across all fronts, including in Lebanon.
Speaking on condition of anonymity, an official source told AFP that Lebanese authorities had not been informed of details of the agreement.
The deal follows weeks of fraught negotiations and periodic threats of fresh hostilities, but its details remain unclear.
Iran's Mehr news agency reported that the US would release $12 billion in frozen assets to Iran before the start of negotiations.
It quoted a 14-point "memorandum of understanding" between the two nations, which it said stipulated "the release of 24 billion dollars in frozen Iranian assets during the 60 day negotiation period" that begins after the MoU is signed.
The Trump administration didn't immediately comment on the details, which may prove contentious as the US presses its effort to end Tehran's nuclear ambitions and deal with its stockpile of highly enriched uranium -- said to have been buried by US strikes last year.
A diplomat told AFP on Monday that the US and Iran are to hold indirect meetings in Doha ahead of the formal signing of the agreement.
The announcement of the deal sparked relief in the region and beyond, with UN Secretary-General Antonio Guterres calling it a "critical step" toward resolving the war.
Saudi Arabia, which Iran repeatedly targeted during the war, welcomed the deal, adding that a lasting agreement would be one that "takes into consideration the security interests of regional states".
Egypt said the deal could be a "turning point" while Pakistan's Prime Minister Shehbaz Sharif called it a "historic step towards peace".
The United Kingdom, France, Germany and Italy said they were prepared to lift sanctions imposed on Iran and will work "with the US, Iran and regional partners to seize this moment, maintain momentum and achieve a long-term diplomatic settlement."
The announcement also brought relief at market opening on Monday. Oil prices plunged nearly five percent, with West Texas Intermediate approaching $80 a barrel for the first time since early March.
"What we're going to be able to do is drive down the cost of energy, not just now but for the long term, and create a real engine of prosperity in the Middle East," US Vice President JD Vance told Fox News.
He said that he planned to attend the signing of the deal, which was expected to take place in Geneva, and that it was possible Trump himself could also go.
Meanwhile, Shippers in Asia and Europe said confidence in resuming transit through the Strait of Hormuz could take weeks to rebuild and navigation will only restart once safety is assured, after the U.S. and Iran agreed a framework deal to reopen the waterway.
U.S. and Iranian officials are expected to sign a memorandum of understanding to end their war and reopen the strait on Friday. Global oil prices fell about 5% on Monday in response.
Shippers have welcomed news of the deal, but are still waiting for more details, including on mine clearance in the strait."AFP, REUTERS
