President Donald Trump has announced a landmark peace agreement between the United States and Iran, a breakthrough that could bring an end to more than three months of conflict in the Middle East and ease fears of a wider regional war.
The memorandum of understanding was finalised overnight and is expected to be formally signed in Geneva, Switzerland, on Friday. While the full details have yet to be published, the agreement has already been welcomed by world leaders as a significant step towards restoring stability in one of the world’s most strategically important regions.
Mr Trump revealed the deal in typically emphatic fashion on Truth Social, declaring:
“Ships of the World, start your engines. Let the oil flow!”
The President said he expects the vital Strait of Hormuz to reopen within days following mine clearance operations. The narrow waterway handles around a fifth of the world’s oil shipments, making it one of the most important trade routes on the planet. Disruption to the strait during the conflict contributed to volatility in global energy markets and growing concerns over the impact on economies worldwide.
The financial response was swift and overwhelmingly positive.
Oil prices fell sharply following the announcement, with Brent crude dropping by around four per cent. Major stock markets across Asia rallied strongly, with Japan’s Nikkei index gaining more than five per cent and substantial gains also recorded in South Korea, Hong Kong and mainland China as investors welcomed the prospect of greater stability and lower energy costs.
The agreement follows more than 100 days of conflict and intensive diplomacy. Reports suggest the war lasted 107 days and placed enormous pressure on military resources, international shipping routes and regional security. Throughout that period, fears persisted that the fighting could escalate into a broader confrontation involving multiple nations across the Middle East.
Under the framework agreed by Washington and Tehran, military operations are expected to cease immediately across multiple fronts, including Lebanon. Iran’s Supreme National Security Council has confirmed that Tehran agreed to the final wording of the memorandum, while Pakistan and Qatar have been widely credited for helping broker the agreement.
While the peace framework represents a major breakthrough, negotiations are not yet complete. The most contentious issues, including Iran’s uranium enrichment programme and its stockpile of enriched uranium, have been deferred to a second round of talks expected to take place during a proposed 60-day ceasefire period. The success of those negotiations will be crucial in determining whether a lasting settlement can be achieved.
Nevertheless, the significance of the agreement was reflected in the international response that followed.
Prime Minister Keir Starmer warmly welcomed the breakthrough and congratulated President Trump, describing the agreement as “a hugely important step forward” for regional stability and the reopening of global trade routes. He praised the United States and the mediators involved in securing the deal and said it represented the progress the international community had hoped to see.
In a joint statement, Britain, France, Germany and Italy also welcomed the agreement, describing it as a diplomatic breakthrough and a moment of opportunity to restore stability across the Middle East and support the global economy. The four nations pledged their support for efforts to ensure the agreement is implemented rapidly and effectively.
António Guterres described the agreement as a critical step towards the peaceful settlement of the conflict, while Ursula von der Leyen welcomed the development and said it should ultimately result in an end to Iran’s nuclear ambitions and other destabilising activities in the region.
US Vice President JD Vance hailed the agreement as a “big win” and said it had the potential to transform the Middle East over the coming decades by creating the conditions for prosperity, investment and long-term stability. He argued that the framework would help ensure Iran never acquires a nuclear weapon while helping drive down energy costs around the world.
For President Trump, the agreement represents one of the most significant foreign policy achievements of his presidency.
For months, critics questioned whether diplomacy could succeed where previous efforts had failed. Yet the agreement has brought Iran back to the negotiating table, reduced the immediate risk of further conflict and created a pathway towards resolving one of the world’s most persistent geopolitical flashpoints.
Speaking after the announcement, Mr Trump argued that previous administrations had failed to secure lasting peace with Iran and described the agreement as a major turning point for the region.
“This Great Deal will bring Peace and Security to the whole Region,” he said.
Not all reactions have been positive. Some Israeli politicians have raised concerns that key details remain unresolved, particularly regarding Iran’s future nuclear capabilities. Israeli National Security Minister Itamar Ben-Gvir said Israel was not bound by the agreement and would continue to make its own decisions regarding national security.
Despite those concerns, there is little doubt that the agreement marks a major diplomatic moment.
At a time when many feared the Middle East was heading towards a wider and potentially devastating conflict, diplomacy has, at least for now, prevailed. Shipping routes are expected to reopen, energy prices are falling, markets are responding positively and hopes for a more stable region have been revived.
The breadth of the international response is perhaps the clearest indication of the significance of the breakthrough. From London to Brussels, from the United Nations to capitals across the Middle East, leaders welcomed the prospect of peace and praised the diplomatic efforts that made it possible.
Whether the agreement ultimately develops into a comprehensive and lasting settlement remains to be seen. Difficult negotiations still lie ahead over Iran’s nuclear programme. However, after more than 100 days of conflict, President Trump has succeeded in securing a breakthrough that many believed would never materialise.
Supporters will argue that it demonstrates his long-held belief in achieving peace through strength, combining military pressure with determined diplomacy. Critics will continue to scrutinise the finer details. But for now, a conflict that threatened to destabilise an entire region has moved from the battlefield to the negotiating table, and President Trump can reasonably claim to have played the decisive role in making that happen.
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