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Jun 19, 20261
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US and Iran Sign Peace Deal, Strait of Hormuz to Reopen Immediately
The United States and Iran have signed a peace deal that takes immediate effect, with Iran reopening the Strait of Hormuz and the US lifting its naval blockade, as announced by Pakistan's Prime Minister Shehbaz Sharif. The agreement marks a significant de-escalation of tensions and is expected to stabilize global oil markets and reduce geopolitical risks.
Quick Facts
Who
United States
What
signed a peace deal taking immediate effect
When
2026-06-19 (announcement date)
Where
Strait of Hormuz
- signed a peace deal taking immediate effect
- Iran reopened the Strait of Hormuz
- US lifted its naval blockade
- commitment to de-escalate hostilities
- United States
In a significant diplomatic breakthrough, the United States and Iran have signed a peace deal that takes immediate effect, according to an announcement by Pakistan's Prime Minister Shehbaz Sharif. The agreement includes Iran reopening the strategic Strait of Hormuz and the US lifting its naval blockade, marking a dramatic de-escalation of hostilities between the two nations. The Strait of Hormuz is a critical chokepoint for global oil shipments, and its reopening is expected to ease concerns over energy supply routes and reduce geopolitical tensions in the region.
Pakistan's Prime Minister made the announcement, underscoring Pakistan's role as a mediator in the talks. While full details of the accord have not been released, both sides have committed to further steps to normalize relations. The lifting of the US naval blockade will allow Iranian vessels to traverse the Gulf more freely, and Iran's reopening of the strait promises to restore a vital artery for international oil trade that had been disrupted by recent conflicts.
Analysts view this agreement as a major shift in Middle Eastern geopolitics, with potential implications for global oil prices and regional stability. The deal comes after months of intense negotiations and signals a willingness from both Washington and Tehran to pursue peaceful resolutions. The immediate implementation of the accord has been welcomed by many international observers, although some caution that lasting peace will require sustained dialogue and mutual trust.
As part of the broader context, the announcement was included in a roundup of weekly highlights by the South China Morning Post, which also covered other topics such as China's C919 jets being grounded for safety checks and the closure of Shein's Paris store. However, the peace deal between the US and Iran dominated attention given its far-reaching consequences for global security and economics.
Why This Matters
This peace deal brings an immediate end to the naval confrontation that threatened global oil shipping through the Strait of Hormuz, a critical chokepoint for about 20% of the world's petroleum. For readers, this means potential easing of oil price volatility, reduced risk of a broader regional conflict involving Gulf states, and a clearer outlook for energy-importing economies like those in Asia and Europe. Investors and policymakers should monitor follow-up normalization steps and verify if the ceasefire holds before adjusting risk assessments.
Timeline & Sources
Jun 19, 2026
WirePakistan's PM announces US-Iran peace deal; Strait of Hormuz to reopen immediately