US and Iran sign peace deal ending war, reopening Strait of Hormuz

Consensus Summary

The United States and Iran have reached a ceasefire agreement, signing a memorandum of understanding (MOU) to end their war after more than three months of conflict. The deal, confirmed by multiple sources, includes an immediate halt to military operations on all fronts, including Lebanon, and the toll-free reopening of the Strait of Hormuz for 60 days. The signing ceremony was initially planned for this Friday in Switzerland, though the MOU was signed early, with a commemorative event still scheduled. US President Donald Trump announced the agreement during the G7 summit in France, which began on Monday and runs for three days, signaling a major diplomatic shift in the Middle East.

The conflict has devastated the region, with Lebanon bearing the brunt of the fighting. According to THEAGE and SMH, the war has resulted in 3,783 deaths and 11,699 wounded since it began. The ceasefire is intended to stabilize the situation, though tensions remain high, particularly over the future of Israeli forces in southern Lebanon and Hezbollah’s continued rocket attacks. The deal also includes a $US300 billion reconstruction fund for Iran, though US officials emphasize that the funding will come from private investment and sanctions relief rather than direct US contributions.

Key figures in the negotiations include US President Donald Trump, Iranian President Masoud Pezeshkian, and Pakistani Prime Minister Shehbaz Sharif, who acted as a mediator. Trump confirmed the deal via social media early on Sunday evening, while Sharif announced the agreement in a statement. The ABC reports that Trump signed the MOU electronically over the weekend, with a physical signing ceremony still planned for Friday. Trump has also warned Iran that if the deal fails within 60 days, the US may resume military action, adding an element of uncertainty to the fragile peace.

While the core details of the agreement are consistent across sources, there are differences in emphasis and specific figures. The SMH and ABC both mention the $US300 billion fund but differ slightly in the Australian dollar equivalent ($425 billion vs. $424 billion). The Guardian notes uncertainty over whether Israel will end its attacks on Hezbollah, while THEAGE and SMH highlight Trump’s criticism of Israeli Prime Minister Benjamin Netanyahu for launching airstrikes that threatened to derail the deal. The ABC also reports Trump’s quip about sending Vice President JD Vance to the signing ceremony, suggesting a strategic move to manage political fallout.

The next steps involve finalizing the details of the agreement over the next 60 days, including negotiations on Iran’s nuclear program, the reconstruction fund, and the long-term management of the Strait of Hormuz. The SMH and ABC both note that the US will lift sanctions on Iranian oil exports and end its naval blockade within 30 days, though the exact timeline for broader sanctions relief remains unclear. Iran has also committed to down-blending its highly enriched uranium stockpile under IAEA supervision, though the specifics of this process will be determined in further talks. The commemorative signing ceremony in Switzerland on Friday will mark the official commencement of technical-level discussions to solidify the peace deal.