The United States and Iran signed a peace agreement on June 18, 2026 [2], to end their current war and reopen the Strait of Hormuz.

The deal marks a critical shift in Middle East stability by halting active combat and restoring the flow of global shipping through one of the world's most vital maritime chokepoints.

U.S. President Donald Trump and Iranian President Masoud Pezeshkian signed the agreement [2]. The diplomatic breakthrough followed mediation efforts by Pakistani Prime Minister Shehbaz Sharif [1].

This agreement concludes a conflict that lasted four months [4]. The primary goals of the pact are to stop the fighting and address broader regional tensions that have destabilized the area [1].

According to reports, the reopening of the Strait of Hormuz is a central pillar of the deal [1]. The waterway is essential for the transport of oil and commercial goods, and its closure during the conflict created significant economic pressure globally [1].

Prime Minister Shehbaz Sharif and President Trump both said the deal reached a successful conclusion [1]. The mediation by Pakistan served as a bridge between the two adversaries to reach a formal ceasefire [1].

The agreement aims to provide a framework for long-term peace, though the specific terms regarding sanctions and regional security arrangements remain under scrutiny by international observers [1].

The agreement, mediated by Pakistan, halts a four-month conflict.

The resolution of the four-month conflict suggests a pivot toward diplomatic pragmatism over military escalation. By prioritizing the reopening of the Strait of Hormuz, both nations have acknowledged that the economic cost of the war outweighed the strategic gains of continued fighting. Pakistan's role as a mediator further establishes Islamabad as a key diplomatic player in managing U.S.-Iran relations.