U.S. President Donald Trump announced a peace agreement with Iran to end their war and reopen the Strait of Hormuz to all ships [1, 2].

This agreement aims to restore free navigation through one of the world's most critical maritime chokepoints and stabilize global oil markets after months of intense conflict [2, 3].

The deal consists of a 14-point memorandum of understanding [1]. According to the terms, the Strait of Hormuz will be reopened toll-free [5]. The agreement also includes the lifting of sanctions, and the establishment of a $300 billion fund for the reconstruction of Iran [1].

"The Deal with the Islamic Republic of Iran is now complete," Trump said [2]. He said the memorandum will ensure the waterway is open to all vessels [5].

Reports indicate that Pakistan and its prime minister mediated the negotiations [5]. Some reports also suggest Qatar provided support during the process [2].

A formal signing ceremony is scheduled for Friday [1]. While some reports indicate the deal contains provisions concerning Lebanon [2], other sources state there is no reference to Lebanon in the agreement [3].

Trump said the agreement marks an end to Washington's naval operations in the region [2]. The memorandum represents a significant shift in U.S. foreign policy toward the Islamic Republic, prioritizing economic reconstruction and maritime security over continued military engagement [1, 4].

“"The Deal with the Islamic Republic of Iran is now complete."”

The resolution of the US-Iran conflict through a structured memorandum suggests a strategic pivot toward regional stability to protect global energy supplies. By combining the reopening of the Strait of Hormuz with a massive reconstruction fund, the U.S. is utilizing economic incentives to secure a diplomatic exit from a high-tension military standoff.