Iran and US Sign Peace Deal Ending West Asia Conflict

A major conflict between Iran and the United States that rattled West Asia and the global economy has formally ended with a peace agreement signed on June 18, 2026. The deal, preceded by a memorandum of understanding on June 15, was signed online by US President Donald Trump, Vice President JD Vance, and Iranian Parliament Speaker Mohammad Bagher Ghalibaf, bringing relief to the region and the world. However, concerns persist about long-term stability, as Israel continues its military operations and insists it is not bound by the ceasefire terms.

The conflict erupted on February 28, 2026, when the US and Israel launched heavy airstrikes under Operation Epic Fury, killing Iran's Supreme Leader Ayatollah Ali Khamenei and other top officials. Iran retaliated on March 1 with missiles and drones targeting Israel and US military bases in Iraq and other Arab nations. The war escalated over weeks, with Israel attacking Hezbollah positions in Lebanon, Iran targeting Gulf energy facilities and shipping, and the UN Security Council passing a resolution on March 11 demanding an end to attacks and safe passage through the Strait of Hormuz.

A temporary two-week ceasefire brokered by Pakistan in Islamabad on April 8 failed after Iran rejected demands to suspend uranium enrichment and lift its blockade of the Strait of Hormuz. The US then fully blocked Iranian ports. A separate Israel-Lebanon ceasefire was reached on April 16 and held until late May. By May 5, heavy airstrikes ended, and the conflict shifted to economic and naval blockades. Following the peace agreement, Iranian leadership transitioned to Khamenei's son, Mojtaba Khamenei, who was elected the new Supreme Leader on March 9. The war disrupted global oil markets, with prices spiking as the Strait of Hormuz was fully blocked in late March.