The United States and Iran have agreed on the wording of a peace deal that would end hostilities and reopen the Strait of Hormuz, negotiators have confirmed.
Pakistani Prime Minister Shehbaz Sharif, who has hosted peace negotiations between the parties, announced there was a “final, agreed-upon text” in place.
Sharif added in a post on X that “peace has never been this close as it is now,” signalling a significant breakthrough after weeks of difficult talks.
Iran had returned to exchanging fire with the US and Israel over the past week, with missile strikes hitting critical infrastructure across the region.
Peace negotiations have dragged on for around a month, with President Trump alternating between threatening to restart full-scale war and claiming a resolution was imminent.
A ceasefire was first agreed on 7 April, though hostilities resumed before a lasting settlement could be reached.
Iranian Foreign Minister Abbas Araghchi said on Friday that an agreement “has never been closer,” echoing the cautious optimism expressed by other negotiators involved in the process.
A Trump administration official said the emerging agreement would reopen the Strait of Hormuz and begin the process of destroying or removing Tehran’s highly enriched uranium, with parties given room to work out the technical details.
The deal is also expected to involve the lifting of sanctions and the release of frozen Iranian assets, representing a substantial shift in the economic relationship between the West and Tehran.
Trump had previously lashed out at Iranian officials for leaking details of the emerging peace deal, warning that “they better get their act together” before negotiations could be concluded.
Statements from officials involved in the conflict have moved markets sharply, with oil prices falling to $82 per barrel after previously surging to nearly $120 per barrel.
Natural gas prices have also eased from their recent highs, though analysts have warned that uncertainty remains over damage to key oil refineries and other energy producers in the region.
France and the UK have said they were set to take on a mission to destroy mines laid across the strait, a task that carries significant logistical and diplomatic weight.
Economists have warned that disruption to the strait lasting around three months would carry severe consequences for the UK and the broader global economy.
UK growth is forecast to take a measurable hit from trade disruption, while inflation could race past six per cent in the worst-case scenario if energy supply chains remain compromised.