The United States and Iran have reached a peace agreement to end all military operations between the two nations [1, 2].

The deal represents a significant shift in Middle East geopolitics by halting direct hostilities and addressing the stability of global energy corridors. The reopening of the Strait of Hormuz is a central component of the agreement, as the waterway is vital for international oil shipments [2].

Pakistani Prime Minister Shehbaz Sharif announced the development on June 14, 2026 [2]. Sharif said the peace agreement between the United States of America and the Islamic Republic of Iran has been reached [1]. The announcement also referenced the involvement of U.S. President Donald Trump in the process [1, 2].

According to the announcement, the agreement mandates an immediate end to U.S. military operations against Iran [2]. This cessation of hostilities aims to stabilize the region and reduce the risk of wider conflict, a goal that has eluded previous diplomatic efforts.

An official signing ceremony is scheduled for Friday, June 19, 2026 [1]. Sharif said the ceremony will take place in Switzerland [1].

While the specific terms of the treaty have not been fully released, the primary objectives include the cessation of combat, and the restoration of maritime transit in the Strait of Hormuz [2]. The selection of Switzerland as the venue for the signing continues the country's tradition of serving as a neutral ground for high-stakes international diplomacy [1].

“the peace agreement between the United States of America and the Islamic Republic of Iran HAS BEEN REACHED.”

The resolution of hostilities between the U.S. and Iran, coupled with the reopening of the Strait of Hormuz, could significantly lower global oil price volatility and reduce the likelihood of a large-scale regional war. The use of Pakistan as the announcing party and Switzerland as the venue suggests a complex multilateral mediation effort to bridge the gap between Washington and Tehran.