US and Iran reach initial deal to open Strait of Hormuz and extend ceasefire
Pakistan and Qatar help broker a permanent end to military operations
The US and Iran have agreed in principle to reopen the Strait of Hormuz and extend a fragile ceasefire, in a move that could ease global energy pressures and calm months of conflict. The draft deal, announced by mediators, is set to be signed on Friday in Switzerland. However, major issues, including Iran’s nuclear stockpile and ongoing regional clashes, remain unresolved. Follow our live coverage for the updates and key perspectives from across the globe:
European Union chief Antonio Costa welcomed Monday a deal between the US and Iran to end the Middle East war, adding that the bloc was ready to contribute to a strategy for "lasting peace".
"I look forward to an end to this costly war and to the full restoration of freedom of navigation in the Strait of Hormuz," Costa, the European Council President, wrote on X.
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The Ambassador of India to Oman, Prashant Pise, interacted with the 20 Indian crew members of MT Jalveer in Muscat ahead of their repatriation to India and wished them a safe journey home.
In a post on X, the Embassy of India in Muscat stated, "The crew were safely evacuated ashore, in coordination with Omani authorities, following the incident involving the vessel on 11 June 2026."
The interaction provided an opportunity for the top diplomat to personally review the well-being of the rescued sailors following the maritime security incident. Reaffirming its unwavering commitment to the safety of citizens overseas, the mission further highlighted on the social media platform that the "Embassy of India remains committed to extending prompt assistance and support to Indian nationals in distress and ensuring their welfare and safe return home."
Australian Prime Minister Anthony Albanese welcomed the peace deal between the US and Iran and issued a call for both sides to show continued restraint.
In a joint statement with Foreign Affairs Minister Penny Wong, Albanese said that the Australian government is "pleased" that the agreement includes steps towards re-opening the Strait of Hormuz and restoring freedom of navigation, reports Xinhua news agency.
"Australia has long called for de-escalation and an end to the conflict, including in Lebanon. As we have said, the longer this war goes on, the greater the impact will be," they said.
"Continued restraint and constructive engagement will be essential to prevent further escalation and secure a lasting agreement."
Global crude oil prices declined by nearly 5 per cent on Monday after the United States and Iran reached an agreement and announced the reopening of the Strait of Hormuz, easing concerns over disruptions to global energy supplies.
The international oil benchmark Brent crude fell as much as 4.90 per cent to $83.05 per barrel in early trade, while US West Texas Intermediate (WTI) crude plunged 5.74 per cent to around $80 per barrel.
Iran's frozen assets worth $12 billion continue to be a primary bone of contention even as the world celebrates a peace deal between the US and Tehran, which is scheduled to be signed on Friday in Geneva.
According to Iran's Mehr news agency, which cited a 14-point memorandum of understanding, the US has agreed to release the frozen assets before the start of negotiations, which focus on key issues including Tehran's nuclear programme.
The document published by Mehr stipulates "the release of 24 billion dollars in frozen Iranian assets during the 60-day negotiation period" that begins after the memorandum of understanding is concluded. Furthermore, the text, which has not been officially confirmed, specifies that "half of this amount must be made available to Iran before the start of the negotiations."
However, the US was quick to turn the claim on its head, with an official telling Axios that no frozen funds will be released without Iran implementing its commitments. The senior US official stated, "This is a pay-for-performance deal."
The leaders of France, the United Kingdom, Germany and Italy have welcomed the announcement of a memorandum of understanding between the US and Iran, hailing it as a major diplomatic breakthrough and expressing readiness to lift relevant sanctions if Iran takes clear, verifiable steps to address concerns over its nuclear programme.
In a joint statement, the four European leaders congratulated the US, the Iranian government and all parties involved in facilitating the agreement. They also acknowledged the role played by mediators in advancing the diplomatic process.
“We warmly welcome the announcement of the memorandum of understanding between the US and Iran,” the leaders said. “We congratulate the United States, the Iranian government and all those involved, including Pakistan, Qatar and all other mediators, on this diplomatic breakthrough.”
Asian markets rose on Monday (June 15) following the announcement of a US-Iran deal late on Sunday: Japan’s Nikkei 225 index jumped more than 4% on Monday, as global markets rallied following reports that the US and Iran have reached an agreement aimed at ending the conflict in the Middle East.
The sharp gains in Tokyo reflected broad investor optimism that a de-escalation between Washington and Tehran could ease geopolitical tensions, stabilise energy supplies, and reduce the risk of wider regional disruption that has weighed on global equities in recent weeks.
Turkish President Recep Tayyip Erdogan has welcomed the announced agreement between the United States and Iran, urging all parties to avoid actions that could undermine what he described as a rare opportunity for lasting peace in the region.
Erdogan, in an X post, said he hoped the development “will pave the way for the establishment of a lasting environment of peace and security in our region,” calling the reported breakthrough something “the entire world has long needed.”
He also warned against escalation in the critical period ahead of the agreement’s signing, urging restraint in rhetoric and actions that could inflame tensions or allow for “possible sabotage” of the diplomatic process.
The Turkish leader added that Ankara is prepared to continue supporting efforts aimed at stabilising the region, reflecting Turkey’s longstanding role as a regional mediator amid competing interests involving the United States, Iran, and neighbouring conflict zones.
UN Secretary-General Antonio Guterres has welcomed what has been announced as a US–Iran peace deal, describing it as a “critical step” toward ending months of conflict and easing tensions across the Middle East.
Guterres congratulated both Washington and Tehran, saying the agreement reportedly provides for an “immediate and permanent ceasefire,” the reopening of the Strait of Hormuz, and a framework for further negotiations between the two sides.
“I warmly congratulate the US & Iran for having reached a peace deal that provides for an immediate & permanent ceasefire, the reopening of the Strait of Hormuz, as well as a framework for further negotiations,” he wrote.
“This represents a critical step towards the peaceful settlement of the conflict,” he added.
Qatar on Monday welcomed a memorandum of understanding (MoU) between the US and Iran, describing the agreement as a positive step toward reducing regional tensions after months of escalating conflict across the Middle East.
Prime Minister and Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani said Qatar “welcomes the agreement reached between the US and Iran” and praised regional and international actors — including Pakistan — for helping create conditions for the understanding.
In a post on X, he expressed hope that upcoming negotiations would proceed “in a positive and constructive spirit,” saying they could help consolidate early progress and build momentum toward broader stability efforts.
“We affirm that the State of Qatar will always remain a steadfast supporter of these efforts and of all that promotes security and stability at the regional and international levels through dialogue and peaceful means,” he said.
Iran’s embassy in Turkiye on Sunday welcomed what it described as a “new era” in the Middle East, offering an early diplomatic signal of Tehran’s response to reports of a tentative US–Iran agreement announced by President Donald Trump and Pakistani officials.
“Welcome to the Middle East of a new era,” the embassy posted on social media, framing the development as a potential turning point in regional tensions that have escalated sharply in recent months.
US Secretary of State Marco Rubio has publicly congratulated President Donald Trump on what the White House is calling a milestone agreement with Iran, noting the announcement’s timing coincides with the president’s birthday.
Rubio’s remarks add to the administration’s celebratory tone following Trump’s claim that a breakthrough deal had been reached aimed at de-escalating months of regional conflict involving Iran, Israel, and allied armed groups across the Middle East.
US Vice President JD Vance said Sunday he planned to attend the signing of an Iran peace deal in Switzerland in a few days, but that President Donald Trump might go.
"I certainly plan to be there, but it's possible the president himself could be there," Vance told Fox News when asked if he'd be at the ceremony, which mediator Pakistan said would take place in Geneva on June 19.
Iran’s Deputy Foreign Minister Kazem Gharibabadi has said a deal with the United States has been finalised, with the official signing scheduled to take place in Switzerland on Friday, according to state media reports.
Speaking on state television during a phone interview, Gharibabadi said an “immediate and permanent end” to hostilities would be announced, including a halt to military operations across multiple fronts such as Lebanon.
He also claimed that the US naval blockade against Iran would be lifted the same night.
The reported statements have not yet been independently verified, and no formal confirmation has been issued by US authorities.
President Donald Trump has confirmed that the United States and Iran have reached an agreement, marking a potential breakthrough in efforts to end months of escalating conflict in the Middle East.
The announcement, if fully implemented, would represent a major turning point in a crisis that has drawn in Israel, Hezbollah, and other regional actors, with fighting spreading across Lebanon, Gaza, and key maritime routes.
Details of the deal have not yet been fully released, but it is expected to include a framework aimed at halting hostilities and opening a path toward broader negotiations on security arrangements, sanctions relief, and Iran’s nuclear programme.
The confirmation comes after weeks of contradictory signals between Washington and Tehran, with both sides previously signalling progress while disputing key terms of any final agreement. Regional tensions remain high, and it is not yet clear how allied groups on the ground will respond to the reported breakthrough.
Pakistan’s prime minister says the United States and Iran have agreed to an “immediate and permanent” halt to military operations across all fronts, including Lebanon, in a major claimed breakthrough aimed at de-escalating regional conflict.
The announcement, if confirmed by both Iran and the US, would mark a significant shift in efforts to contain fighting that has spread across multiple theatres in the Middle East, where tensions involving Israel, Hezbollah, and Iran-aligned groups have continued to escalate.
However, details of the agreement have not yet been independently verified, and neither Washington nor Tehran has issued a formal joint statement confirming the terms of the reported truce.
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