Since the war between the United States and Iran broke out on Feb. 28 and for 106 days weighed on the global economy and turned the Middle East into a powder keg, it has effectively come to an end. On the 14th (local time), U.S. President Donald Trump said in a statement posted on his social media, Truth Social, "The transaction with the Islamic Republic of Iran is now complete," adding, "Congratulations to all." He continued, "I hereby fully approve the complete opening of the Strait of Hormuz with no tolls, and at the same time approve the immediate lifting of the U.S. Navy blockade," declaring, "Ships of the world, start your engines. Let the oil flow."
President Trump personally revealed the peace agreement just before a massive event held after installing a special fighting arena on the White House lawn. It was two hours before a UFC mixed martial arts event at the White House to celebrate the 250th anniversary of the U.S. Declaration of Independence and Trump's 80th birthday.
Almost at the same time, Pakistan Prime Minister Shehbaz Sharif, who served as the key mediator in the armistice talks, officially announced the conclusion of the agreement to the world via social media. Sharif said, "After intensive talks, I am pleased to announce that a peace agreement has been reached between the United States and the Islamic Republic of Iran," adding, "Both sides declared the immediate and permanent end of military operations on all fronts, including Lebanon." He added that additional meetings will be held this week for technical details, and an official signing ceremony is scheduled for the 19th in Switzerland.
According to major outlets including AP and Reuters, the United States agreed to lift the blockade of Iran's key ports and ease economic sanctions, opening the way for Iran to sell oil again on the international market. The unfreezing of $25 billion (about 38 trillion won) in Iran's frozen assets was also reportedly included as a key condition. In contrast, the complete dismantlement of Iran's nuclear program, cited as the sharpest sticking point, and a plan for a permanent peace settlement will be tied up through additional talks over the next 60 days.
Iran agreed to halt uranium enrichment and the expansion of nuclear facilities and to freeze the current status until a final peace deal is reached. According to the International Atomic Energy Agency (IAEA), Iran holds a large stockpile of highly enriched uranium that is easily convertible into weapons-grade nuclear material. U.S. Defense Secretary Pete Hegseth appeared on CBS on the 14th and stressed that the deal is strictly performance-based. Hegseth said, "No funds will be released until Iran complies." He explained that the structure swaps the release of funds for Iran's concrete steps.
Israel, which started this war alongside the United States, was thoroughly excluded from the talks. On the 14th, the very day the United States and Iran reached the agreement, the Israel Defense Forces bombed the Dahiyeh area on the southern outskirts of Beirut, Lebanon's capital, ratcheting up military tensions. Dahiyeh is considered a stronghold and core base of the pro-Iran armed faction Hezbollah. Israel Prime Minister Benjamin Netanyahu issued a joint statement with the Ministry of National Defense the same day, asserting the legitimacy of the strikes by saying, "Hezbollah launched rocket and drone attacks toward northern Israel, clearly violating the principles of a cease-fire."
In the process, the U.S. government again diverged from Israel. Ahead of the cease-fire, President Trump publicly criticized Netanyahu on social media, saying, "Israel has every right to defend itself, but this incident was a very small and meaningless attack with zero casualties," adding, "Under no circumstances should this important process toward peace be disrupted by responding to such attacks."
Brent crude, the global oil price benchmark, fell to the $84-per-barrel range in the market right after news of the agreement. It is still about 20% higher than in late February before the war broke out, but it has retreated significantly from the peak above $110 right after the outbreak. If the Strait of Hormuz, a key artery for global shipments of crude oil, natural gas and fertilizer, reopens, supply chain strains are also expected to ease.
Experts said that to safely reach the final destination of a signing ceremony ending the war on the 19th in Switzerland, attention will be on how the current leadership will quell fierce internal backlash from hard-liners in Iran, and how the United States will handle matters if Israel continues shows of force. Inside Iran, complicated discordant notes are leaking out even after the agreement. The Islamic Revolutionary Guard Corps issued a statement the same day, protesting that "the U.S. government forced unreasonable demands to have the memorandum of understanding ending the war signed unconditionally on the 14th, President Trump's birthday." They expressed strong discontent that "President Trump is trying to thoroughly exploit the solemn peace deal signing ceremony as a tool for personal political promotion."
Mohammad Bagher Ghalibaf, Iran's lead negotiator, sharpened his tone on the 14th after Israel bombed Lebanon ahead of the agreement, saying, "A United States that cannot even control Israel has neither the will nor the ability to fulfill its promises." Some hard-liners in Iran are fiercely opposing the deal, saying the agreement to be concluded will reduce Iran to an American colony, even floating the impeachment of the foreign minister. As internal strife in the system approached a dangerous level, Iran President Masoud Pezeshkian delivered a national address urging unity, saying national division would instead undermine the country's negotiating power.