Pakistani Prime Minister Shehbaz Sharif said early Monday on social media that the United States and Iran have reached an agreement to end their war and that officials will hold a formal signing ceremony on Friday in Switzerland. Sharif said the pact requires "the immediate and permanent termination of military operations on all fronts, including in Lebanon."
The full text of the agreement has not been made public. Sharif's post came after an Israeli strike on Lebanon on Sunday that prompted condemnations from Iranian officials and drew comment from U.S. President Donald Trump. The circumstances and precise provisions of the deal were not immediately known.
Multiple sources previously said the draft agreement included provisions to reopen the Strait of Hormuz and end the U.S. blockade of Iranian ports, while extending a ceasefire. Those reports also indicated that Iran's nuclear program would be set aside for a further 60-day period of talks rather than being resolved immediately.
On Sunday, Iranian negotiator Mohammad Baqer Qalibaf posted on X that Israel's latest attack on the southern suburbs of Beirut - an attack Israel said targeted Iranian-backed Hezbollah militants - demonstrated that the United States lacks "the will and ability to fulfill your commitments." Iran's foreign ministry said it held the United States responsible for the strike.
Iran issued warnings of a possible retaliatory strike, with its top joint military command saying the "finger (is) on the trigger" and expressing readiness to fire at the "enemy's heart." In a post on his Truth Social platform on Sunday, President Trump wrote: "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."
Israel has said it was not a party to the planned U.S.-Iran agreement. Prime Minister Benjamin Netanyahu has differed with the United States over American requests that Israel curb its military actions in Lebanon in order to permit a deal between Washington and Tehran to proceed.
The conflict between Israel and Iran-aligned Hezbollah in Lebanon reescalated following the start of the U.S.-Israeli campaign against Iran in February. In earlier comments, a senior Iranian official said that, under terms discussed in the draft agreement, the United States would agree to release $25 billion of frozen Iranian assets while Iran would agree not to produce or acquire nuclear weapons. That official added that Iran had agreed to maintain the nuclear status quo - including refraining from uranium enrichment and from expanding nuclear facilities - until a final agreement is concluded.
Summary
Pakistan's prime minister announced that a U.S.-Iran peace agreement has been reached and will be formally signed in Switzerland on Friday. The declaration included a pledge to stop military operations on all fronts, including Lebanon. Reports connected to earlier drafts suggest the deal would address navigation through the Strait of Hormuz, the U.S. blockade of Iranian ports, a pause on nuclear resolution for 60 days, and the possible release of frozen Iranian assets.
Key points
- The agreement reportedly calls for an immediate and permanent end to military operations on all fronts, including in Lebanon.
- Draft terms that have been reported include reopening the Strait of Hormuz and ending the blockade of Iranian ports, which could affect global energy shipping lanes and related markets.
- Reported provisions include the potential release of $25 billion in frozen Iranian assets and a 60-day period to address Iran's nuclear program, which would have implications for international finance and sanctions policy.
Risks and uncertainties
- Details of the accord have not been disclosed - the precise terms were "not immediately known," leaving implementation and enforcement mechanisms unclear; this uncertainty affects markets tied to energy and finance.
- Recent Israeli military action in Lebanon and Iran's warnings of a "strong response" and statements that the "finger (is) on the trigger" indicate a risk of continued or renewed regional hostilities, which would impact defence and energy sectors.
- Political disagreement between Israel and the United States - including reported U.S. demands that Israel curb operations in Lebanon - creates uncertainty about regional cooperation and the durability of any cessation of hostilities.
Note: This article reflects statements and reported draft provisions as described by officials and unnamed sources; it does not include the full text of the agreement since that had not been released.