US-Iran peace deal finalized: What both sides agreed to; What remains unresolved; Details

The United States and Iran have reached a deal to end their nearly four-month war, with President Donald Trump and Pakistani Prime Minister Shehbaz Sharif both confirming the agreement on Sunday.

The US and Iran have reached a deal to end their four-month war. (REUTERS)

How the deal was announced

Trump confirmed the agreement in a post on Truth Social, writing: “The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!”

Pakistan, which served as a mediator throughout the negotiations, played a key role in bringing the two sides together. Sharif announced on X that “both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon,” adding that the official signing ceremony will take place on June 19 in Switzerland.

The deal almost fell apart on Sunday after Israel struck the southern suburbs of Beirut, targeting Iranian-backed Hezbollah militants.

Also Read: Who were Lucas Brito Chaves Frota and Lucas Vignale? All victims of Rio helicopter crash ID’d

What is in the deal

Both countries agreed to stop fighting on all fronts, including Lebanon, which had long been a sticking point since Israel wanted it excluded from any US-Iran agreement.

The US agreed to lift its naval blockade on Iranian ports.

Trump said traffic through the Strait of Hormuz should resume without any payment being imposed on vessels.

The official signing ceremony is set for June 19 in Switzerland and technical talks between the two sides will be held this week.

The deal also calls for the dismantling of Iran’s nuclear program, with highly enriched nuclear material to be destroyed on-site by the US and an enforceable verification system put in place.

A senior administration official said the agreement would also guarantee “long-term peace in the region,” including with Israel and Iran’s proxies, per MS Now.

However, a senior Iranian official told Reuters that the US had agreed to allow Iran to dilute its stockpile of highly enriched uranium on Iranian soil under a final deal, a position that differs from what the US has said.

Also Read: What has Trump told JD Vance about his political future? VP reveals new details on 2028 talks

What is not yet settled

This agreement is not a final peace treaty. It is a memorandum of understanding that sets up a 60-day negotiating period, during which US and Iranian officials will work toward a more comprehensive agreement.

And Iran’s Deputy Foreign Minister Kazem Gharibabadi said negotiations for a final deal will only begin after Iran verifies that the US has followed through on its commitments, including ending hostilities, lifting the blockade and releasing assets. He also said the full text of the memorandum will only be made public after the official signing ceremony on Friday.

Gharibabadi made clear that the agreement does not signal any change in how Iran views the US. “This memorandum of understanding does not mean trusting the enemy,” he said. “We will monitor the implementation of US commitments,” per Al Jazeera.