The United States and Iran have reached a preliminary agreement aimed at ending months of conflict, with an official signing ceremony scheduled to take place in Switzerland later this week, according to announcements by Pakistani Prime Minister Shehbaz Sharif and U.S. President Donald Trump.

Prime Minister Shehbaz Sharif stated that both sides have agreed to the immediate and permanent cessation of military operations across all fronts, describing the development as a significant step toward restoring regional stability. The formal signing of the agreement is expected on June 19 in Switzerland.

While the complete details of the agreement have not yet been disclosed, reports indicate that the framework includes the reopening of the Strait of Hormuz and the lifting of restrictions on Iranian ports, measures that could help ease pressures on global energy markets and international trade flows. Discussions regarding Iran’s nuclear programme are expected to continue during a separate negotiation process over the coming weeks.

The announcement comes despite renewed tensions in the region following an Israeli strike in Beirut, an incident that drew criticism from both Tehran and Washington. President Trump described the attack as unhelpful at a time when diplomatic efforts were nearing a breakthrough.

Iranian officials have maintained that any lasting settlement must address broader regional security concerns, while U.S. officials have indicated that future negotiations will focus on long-term arrangements, including sanctions, nuclear commitments, and regional stability.

The proposed agreement is being viewed as a major diplomatic breakthrough after months of heightened tensions that disrupted energy markets, threatened global shipping routes, and increased geopolitical uncertainty across the Middle East. Markets have responded positively to the prospect of peace, with oil prices retreating on expectations of improved supply flows and reduced regional risk.

Analysts believe the successful implementation of the agreement could improve stability in global energy markets, strengthen investor confidence, and pave the way for broader diplomatic engagement between the two countries following years of strained relations.