WASHINGTON — President Donald Trump announced Sunday that the United States has reached a peace agreement with Iran, a potentially historic diplomatic breakthrough aimed at ending months of war, reopening the Strait of Hormuz and easing pressure on global oil markets.
Trump said in a statement that “the Deal with the Islamic Republic of Iran is now complete,” congratulating all sides and authorizing the removal of the United States naval blockade. He also said the Strait of Hormuz would be reopened.
“Ships of the World, start your engines. Let the oil flow!” Trump said.
The announcement marks a dramatic turn in a conflict that has rattled the Middle East, threatened international shipping, disrupted energy markets and raised fears of a broader regional war.
Reuters reported that the United States and Iran have reached an agreement to end the war, with a signing expected Friday. Reports indicate Pakistan played a key mediating role in the negotiations.
The Strait of Hormuz has been central to the crisis. The narrow waterway between Iran and Oman is one of the world’s most important energy chokepoints, carrying a major share of global oil and liquefied natural gas traffic. Any threat to shipping there can quickly raise oil prices and fuel costs around the world.
Markets responded quickly to the reported agreement. Reuters reported that oil prices dropped more than 4 percent after news of the deal, as traders reacted to the prospect of renewed shipping through Hormuz and a possible easing of the war-risk premium that had been built into energy prices.
The reported framework would reopen the Strait of Hormuz and lift the U.S. naval blockade, while leaving several major issues for follow-up talks. Those unresolved issues include Iran’s nuclear program, missile capabilities and the long-term security arrangement for the Gulf.
That makes the deal significant, but not yet a final end to all tensions.
The agreement appears to establish an immediate ceasefire and a pathway toward broader negotiations. Some reports described a 60-day negotiation window on Iran’s nuclear program and related sanctions issues.
The deal also faces possible complications from other fronts in the region. Reports Sunday noted that an Israeli airstrike in Beirut has already strained the fragile diplomacy, with Iran warning that regional attacks could undermine the agreement.
For Trump, the announcement is a major foreign-policy gamble. Supporters are likely to frame it as a bold act of dealmaking that reopens global energy lanes and prevents further bloodshed. Critics are likely to question whether the agreement gives Iran too much economic relief while postponing the hardest questions about nuclear weapons, missiles and proxy forces.
For ordinary Americans, the most immediate impact could come at the gas pump. If oil flows through Hormuz normalize and traders believe the ceasefire will hold, crude prices could continue to fall. But if the deal stalls, if attacks resume, or if Iran and the United States clash over enforcement, markets could swing sharply again.
The agreement also carries major implications for U.S. troops, Navy operations, Gulf allies, Israel and global energy customers.
The White House had not immediately released a full written text of the agreement. Until the document is signed and implemented, the durability of the peace deal remains uncertain.
Still, Sunday’s announcement represents the clearest sign yet that Washington and Tehran may be stepping back from open conflict and toward a negotiated settlement after decades of hostility and months of war.
And it is a worse deal than the one previously in place. Nice job, donny. TACO