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A television screenshot shows US Vice President J.D. Vance (left) and Iranian Parliament Speaker Mohammad Bagher Ghalibaf (right) holding peace talks to end the war, mediated by Pakistani Prime Minister Shehbaz Sharif, at a hotel in Islamabad, Pakistan, on April 11 (local time). / EPA, Yonhap

The United States and Iran have reached a peace agreement encompassing the reopening of the Strait of Hormuz and the lifting of the US naval blockade, US President Donald Trump and Pakistani Prime Minister Shehbaz Sharif announced on June 14 (local time).

Iranian Deputy Foreign Minister Kazem Gharibabadi also confirmed the finalization of the memorandum of understanding (MOU) text via state television, with the official signing ceremony scheduled to take place in Switzerland on June 15.

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US President Donald Trump answers questions from reporters aboard Air Force One on his return flight to Washington, D.C., on March 15 (local time). / Reuters, Yonhap

Trump declares "Deal with Iran is done! Ships of the world, start your engines!"—approves immediate lifting of naval blockade

President Trump declared on his social media platform, Truth Social, "A deal with the Islamic Republic of Iran is DONE. Congratulations to all!"

"I am granting full approval for the toll-free reopening of the Strait of Hormuz, and at the same time, approving the immediate lifting of the US Naval blockade," President Trump urged, adding, "Ships of the world, start your engines. Let the oil flow!"

In a separate post, President Trump claimed, "This great deal will bring peace and security to the entire region," asserting that "many Presidents have tried to make peace with Iran, but they all failed before me."

Pakistani PM Sharif: "Immediate, permanent end to military operations on all fronts—signing in Switzerland on the 19th"

Earlier, Prime Minister Sharif of Pakistan, which mediated the talks, announced on X (formerly Twitter) that both sides declared an immediate and permanent cessation of military operations on all fronts, including Lebanon, with the official signing ceremony scheduled for June 19 in Switzerland. Expressing gratitude to Qatar, Saudi Arabia, and Türkiye for their contributions to the mediation, Prime Minister Sharif added that pre-implementation discussions would take place this week.

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Ships sit anchored in the Strait of Hormuz, as viewed from Musandam, Oman, on June 14 (local time). / Reuters, Yonhap

Iranian deputy foreign minister confirms that the MOU was drafted under active distrust, while state media reports that the US was forced to accept an end to the war.

Deputy Foreign Minister Gharibabadi emphasized, "This memorandum of understanding does not mean we trust the enemy; it was drafted under active distrust," adding that Iran will closely monitor the US's compliance with its obligations. Gharibabadi stated that Iran would not begin implementation until the official signing and would disclose the full text of the MOU afterward.

Iran’s state broadcaster IRIB ran a caption reading, "The US was forced to accept an end to the war." Iranian President Masoud Pezeshkian posted on X alongside a photograph of Foreign Minister Abbas Araghchi, writing, "Deal reached. Greetings to Diplomacy General."

Global oil prices plummet 4% while S&P 500 futures rise 0.8% following the announcement of the peace deal.

International oil prices tumbled on the news of the agreement. According to Reuters, Brent crude futures slid $3.51 (4.02%) to $83.82 per barrel, while US West Texas Intermediate (WTI) fell $3.93 (4.63%) to $80.95. Bloomberg reported that S&P 500 futures and Nasdaq 100 futures each climbed 0.8% in New York, while the US dollar weakened against G10 currencies. European natural gas futures also plunged as much as 5.8% at one point.

                                                                                                              Ha Man-joo