The U.S. and Iran will sign a peace agreement in Switzerland on June 19, 2026 [1].

This agreement marks a critical shift in Middle East geopolitics by aiming to terminate active military hostilities and restore the flow of global energy supplies. The resolution of this conflict is expected to stabilize international oil markets by reopening the Strait of Hormuz.

President Donald Trump said the deal is now complete. The agreement focuses on the immediate cessation of all military operations between the two nations and the reopening of the Strait of Hormuz to ensure the movement of oil. Trump said, "Let the oil flow."

Pakistan Prime Minister Shehbaz Sharif will attend the ceremony in Switzerland, having served as a key mediator in the negotiations. Sharif said, "We have achieved an immediate and permanent termination of military operations on all fronts."

While some reports describe the arrangement as a peace deal, others characterize it as a framework deal to end the war. Despite these differing labels, officials from both sides indicate the terms are finalized. An Iranian Foreign Minister said the agreement has never been closer.

The signing ceremony is scheduled for Friday, June 19, 2026 [1]. The event aims to establish a permanent end to the conflict and remove the military barriers that have restricted maritime traffic in one of the world's most vital shipping lanes.

“"Let the oil flow."”

The agreement represents a strategic pivot toward de-escalation in the Persian Gulf. By involving Pakistan as a mediator and focusing on the Strait of Hormuz, the deal prioritizes global economic stability and energy security over the previous policy of maximum pressure, potentially altering the security architecture of the region.