BBC News, Arabic Go to content Main Headlines Listen Watch Main Sections News Economy Health and Science Culture and Arts World Cup 2026 Investigations Washington and Tehran sign an agreement to end the war and start negotiations that will last 60 days, image source: Getty Images
The United States and Iran have signed an agreement to end the war, with a formal signing ceremony set for Friday in Switzerland, marking the start of a 60-day negotiation period.
The memorandum of understanding aims to end months of conflict that erupted following the American and Israeli strikes on Iran in February, which caused widespread disruption in the region and raised concerns about the global economy.
As a result, oil prices fell more than 2% on Thursday, continuing the losses incurred since the announcement of the agreement over the weekend.
Brent crude, the global benchmark, declined by 2.1% to $77.87 per barrel by 05:25 GMT.
US President Donald Trump signed the memorandum on Wednesday after attending the G7 summit in France, during a candlelit dinner at the Palace of Versailles, according to a video posted by one of his aides.
The Iranian Foreign Ministry spokesman, Ismail Baqai, stated to the official Iranian news agency (IRNA) that the document was "completed with the signatures of the two presidents".
Meanwhile, the Iranian chief negotiator and Speaker of Parliament, Mohammad Baqer Qalibaf, considered the deal a "failure" for the United States.
Pakistani Prime Minister Shehbaz Sharif wrote on X platform that the memorandum "comes into effect immediately, and as a first step, the Islamic Republic of Iran will immediately reopen the Strait of Hormuz, while the United States will lift the naval blockade immediately".
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Sharif also confirmed that Pakistan, supported by Qatar, would host a ceremony in Switzerland on Friday to "commemorate this historic milestone and begin the technical talks".
This comes at a time when Tehran reiterated its plans to impose fees on vessels passing through the Strait of Hormuz after the expiration of the sixty-day period specified in the document.
In an interview broadcast on state television, Qalibaf stated that "the Strait of Hormuz will not return to what it was before the war," adding: "Iran has the sovereign right over the Strait of Hormuz, and of course we will charge fees for services".
The document states that Tehran agrees to reduce the level of enrichment of its uranium stockpile under the supervision of the United Nations, which a U.S. official described as a "significant gain".
Iran has repeatedly stated that nuclear issues will only be discussed in subsequent negotiations following the signing of the initial agreement.
The agreement allows Tehran to resume its oil exports, with all sanctions to be lifted if a final agreement is reached after the 60-day negotiation period ends.
Iran may also gain access to a $300 billion reconstruction fund, although officials have confirmed that Washington is not obligated to contribute to it.
Trump warned Iran on Wednesday that he is prepared to resume military action if they do not meet their obligations.
He stated during the G7 summit: "If they do not behave, we will go back to dropping bombs on their heads".
The Israeli army announced on Thursday the death of one of its soldiers in fighting in southern Lebanon the previous day, in an incident that also resulted in the injury of seven soldiers.
The Iranian-American agreement is expected to halt the war on all fronts, including Lebanon.
However, Israeli Prime Minister Benjamin Netanyahu stated that Israeli forces would remain in Lebanon, where they are fighting against Hezbollah, which is supported by Iran.
On the other hand, Hezbollah's Secretary-General Naeem Qassem described the agreement as a "great victory," calling on Lebanon to seize the moment to expel Israeli forces.
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