U.S., Iran Signal Peace Deal Near as Tehran Claims Victory in 3-Month War

WASHINGTON, June 14, 2026* – The United States and Iran signaled Friday that an agreement to end their war was close, with both sides agreeing on a text and Washington expecting to sign an initial deal in the coming days.

A senior U.S. administration official, speaking on condition of anonymity, said the deal met President Donald Trump’s core objectives and put negotiations “in a very, very good place.”

Iranian Foreign Minister Abbas Araqchi told state television that changes were still possible, but the tentative agreement made clear that his country had emerged stronger from the conflict. “Iran is the winner of the war with the U.S.,” Araqchi said.

Terms of Interim Agreement

The so-called memorandum of understanding calls for reopening the Strait of Hormuz and lifting the U.S. blockade on Iranian ports, sources on all sides of the deal said. Negotiations over Iran’s nuclear program, which was Trump’s stated rationale for starting the war, would take place afterward.

Under the agreement announced late Sunday, Iran and the U.S. agreed to lift their blockades on the Strait of Hormuz, through which roughly a fifth of global oil and LNG flowed before the war broke out on February 28. The strait is expected to reopen once both sides formally sign the accord on Friday.

Araqchi said Iran would along with Oman retain control of traffic through the strait, which before the war handled one-fifth of the world's oil and gas supply. “Our sword will always hang over the Strait of Hormuz,” he said.

Frozen Funds Remain Sticking Point

Efforts to reach an interim deal have intensified despite continued strikes launched by both sides, with the warring parties discussing how to release frozen Iranian funds.

Three Iranian sources said a political understanding had been reached, but some issues remained to be discussed in detail, including a mechanism for the release of tens of billions of dollars of Iranian oil revenues frozen in foreign banks.

“Iran wants $6 billion to $12 billion of its frozen funds to be released to Tehran, while Washington wants to release funds in stages for humanitarian goods and rejects returning funds to Iran outright,” said one of the Iranian sources.

Lebanon Ceasefire Complicates Talks

Tensions have already resurfaced over Lebanon. Iran’s insistence on linking any deal to Israel’s campaign against Hezbollah in Lebanon has threatened to derail the talks, as the Iranian-backed militia has repeatedly exchanged fire with Israel, including over the weekend.

Israeli officials said they were not bound by any agreement between Washington and Tehran and would continue operations against Hezbollah. Trump has publicly urged Prime Minister Benjamin Netanyahu to halt Israeli strikes, saying “there should be no more attacks by Israel anywhere in Lebanon.”

Iran made a full ceasefire in Lebanon a key demand, with Araqchi saying the interim deal requires an “immediate and permanent ceasefire” there.

Hormuz Risks Linger Despite Deal

Analysts warn the fragile calm may not prevent future flare-ups, casting doubt over how quickly tanker traffic through the vital waterway can return to normal. The deal leaves unresolved the key disputes that triggered the U.S. and Israeli bombing campaign against Iran, including the future of Tehran’s nuclear programme.

Iran's willingness and ability to choke off the strait for months has shattered a decades-old taboo, raising the prospect that it could do so again whenever it seeks leverage over its Gulf neighbours or adversaries.

The prolonged disruption of the world’s most critical energy chokepoint will almost certainly make shippers, buyers and producers more cautious long after flows resume.

Global Reaction

U.N. Secretary-General Antonio Guterres welcomed the announcement that the United States and Iran have agreed on a peace deal that provides for an immediate and permanent ceasefire, the reopening of the Strait of Hormuz, as well as a framework for further negotiations.

Joint statement from E4 leaders Britain, France, Germany and Italy said: “Iran must never acquire a nuclear weapon. We stand ready to work with the U.S., Iran and the IAEA to this end”.

Australian Prime Minister Anthony Albanese said Australia welcomes the agreement and has long called for de-escalation and an end to the conflict.

The conflict began February 28 when the U.S. and Israel launched “Operation Epic Fury,” targeting Iranian nuclear sites after the IAEA reported Iran was enriching uranium to 60%. The campaign killed Supreme Leader Ali Khamenei and senior IRGC commanders.

Iran responded by shutting the Strait of Hormuz and launching missiles at U.S. bases in Kuwait, Bahrain, and Iraq. The U.S. imposed a naval blockade and struck Iranian coastal radar sites.

Both sides are expected to sign the memorandum in Geneva on Friday, with a 60-day ceasefire set to begin Monday night. Further talks on Iran’s nuclear program and regional security are scheduled for July.