Breaking: US and Iran have reached peace deal, Pakistan says

The United States and Iran have reached an agreement to end the war and open the Strait of Hormuz, offering relief to the global economy more than three months since fighting began.

Pakistani Prime Minister Shehbaz Sharif, who has acted as a central mediator throughout the conflict, said the deal had been reached after extensive talks.

"Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon," Mr Sharif said in a post on X.

He said the official signing ceremony would happen in Switzerland this Friday, June 19.

Full details of the deal were not immediately available.

But US President Donald Trump took to social media to confirm a deal had been reached, saying he had authorised an end to the US naval blockade of Iranian ports in the Strait of Hormuz.

"Congratulations to all!" he wrote on Truth Social, without providing details. He added, "Ships of the World, start your engines. Let the oil flow!"

Mr Trump said the Strait, a critical shipping lane for global energy supplies that Iran has effectively shut down for months, would be open "toll free".

Iran's Deputy Foreign Minister Kazem Gharibabad confirmed to Iranian state TV that a deal with the US had been finalised.

"An immediate and permanent end to the war and military operations on different fronts including Lebanon will be announced tonight,"

he said.

Iranian state media reported Pakistan's statement after a day in which Israel, sidelined from the negotiations, attacked Beirut's southern suburbs and posed a threat to the discussions nearing an end.

Mr Sharif also said the pact called for "the immediate and permanent termination of military operations on all fronts, including in Lebanon".

More negotiations to come

The signing of a memorandum of understanding between Washington and Tehran is expected to kick off 60 days of negotiation on ending the war.

Mr Gharibabad said lifting nuclear issues would be discussed during the 60-day period.

Negotiations would also focus on ending sanctions, Iran's reconstruction and establishing a mechanism to monitor all parties' commitments to the deal, he added.

A senior Iranian official earlier told Reuters that, under the terms of the draft deal, the United States would agree to release $US25 billion ($35.5 billion) of frozen Iranian assets, while Iran would agree not to produce or acquire nuclear weapons.

The official said Iran agreed to maintain the nuclear status quo, including no uranium enrichment or expanding nuclear facilities, until a final deal was reached.

A US official, speaking before the deal was announced, said the agreement would ultimately lead to the dismantling of Iran's nuclear program, with its stockpile of highly enriched uranium to be destroyed and removed.

A senior Iranian official said the draft deal would allow Iran, which denies seeking a nuclear bomb, to dilute its enriched uranium inside the country.

ABC/Wires