UN secretary-general Antonio Guterres has welcomed the announcement that the US 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, a spokesperson said.

“This represents a critical step towards the peaceful settlement of the conflict.”

Pakistani prime minister Shehbaz Sharif said after the deal had been announced that “both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon”.It remains unclear whether Israel agreed to that term. Benjamin Netanyahu is yet to release a statement.

Iran has insisted that any deal must include a ceasefire in Lebanon, where Israel has been fighting the Iranian-backed Hezbollah militant group.

Israeli defence minister Israel Katz warned on Friday that Israel could still act independently toward Iran and that the country would not pull out of the zones it is occupying in Lebanon, Syria and Gaza, nor would it withdraw from the northern refugee camps of the Israeli-occupied West Bank.

Sir Keir Starmer welcomed the US-Iran peace deal as a “hugely important step forward in ending the war” as he stressed that the Strait of Hormuz must remain “fully and permanently open”.

The prime minister congratulated Donald Trump and key mediators on the “breakthrough” after the US president said an agreement “is now complete” and the Strait of Hormuz oil and gas shipping route is to be reopened without tolls.

Sir Keir said in a statement: “I warmly welcome today’s agreement reached between the United States and Iran.“This is a hugely important step forward in ending the war, ensuring regional stability, and re-opening the Strait of Hormuz.”

The Australian government has welcomed the peace deal between the US and Iran and urged both nations to pursue a “durable and lasting peace”.

“Continued restraint and constructive engagement will be essential to prevent further escalation and secure a lasting agreement,” prime minister Anthony Albanese said in a statement.

“We are pleased the agreement between the US and Iran includes steps towards reopening the Strait of Hormuz and the restoration of freedom of navigation,” they said.

Pakistani foreign minister Ishaq Dar this morning said the US-Iran deal reflected sustained diplomacy and the choice of dialogue over confrontation.

He said: “Throughout this period, Pakistan remained actively engaged with all concerned parties and consistently advocated restraint and constructive engagement, maintaining that dialogue and diplomacy remain the only viable means for the resolution of all issues.”

Dar said Pakistan looked forward to a formal signing on 19 June in Geneva.

Asian markets surged today while oil prices tumbled following a tentative peace agreement between the US and Iran.

The deal is expected to alleviate global inflationary pressures and potentially reduce the need for further interest rate hikes by central banks worldwide.

The breakthrough was first announced by Pakistani prime minister Shehbaz Sharif, stating that “a deal had been struck”.

Iranian foreign minister Abbas Araghchi has said that the terms of dealing with Iran’s nuclear program will be finalised in the 60 days after the initial agreement is signed.

A senior US administration official said last week that the agreement would begin the process of destroying or removing Tehran’s highly enriched uranium.

That’s something disputed by Iran, which has insisted it would hold onto its stockpile.

Details of the final peace deal have not been shared by either of the nations.

However, Iran’s Mehr news reported that under the framework, Iran would reiterate its commitment under the Nuclear Non-Proliferation Treaty not to pursue nuclear weapons.

Leaders of the Group of Seven wealthy nations meet at a French lakeside resort today shortly after the US and Iran said they had reached a preliminary deal to end their war.

Discussing next steps ⁠on Iran will be one of several issues the global leaders will wrestle with during the 15-17 June summit, which will also seek common ground on the war in Ukraine, tackling global economic imbalances and sourcing critical minerals outside of the dominant supplier China.

US president Donald Trump is due to arrive in Evian-les-Bains for the gathering at a time when global leaders are increasingly wary of the United States, although French officials were glad ⁠to have secured his presence after he left last year’s G7 summit ​in ⁠Canada early.

Many G7 leaders have been directly impacted by Trump’s volatile moves on the global stage that have upended the Middle East, global trade and diplomacy. His actions have led to larger questions about the US commitment to ⁠the post-war global order it helped establish.

The U.S. and Iran have agreed to a peace deal, bringing an end to months of fighting that has sparked devastation across the region and upended the global economy since the conflict began in late February, U.S. and Pakistani officials announced on Sunday.

The agreement, brokered after weeks of halting negotiations in Pakistan and then Qatar, will see a permanent ceasefire implemented as well as the reopening of the Strait of Hormuz.

Both sides will now enter talks to iron out the details of the agreement and move forward on longer-term issues, including key questions such as uranium enrichment and sanctions.

Donald Trump has yet again criticised Israel’s Benjamin Netanyahu for mounting attacks on Lebanon and said that he should be “very thankful” to the US.“He’s a very difficult guy,” Trump said of Netanyahu.

The US president told the New York Times: “And to be honest with you, he should be very thankful to us for doing this. Because if Iran had a nuclear weapon, Israel wouldn’t be around for two hours.”

Trump insisted that it was the threat of further attacks on Iran that made Tehran agree to the deal. “They did not want the third attack,” he said.

“They do care about living.”

“The bottom line is that those attacks that we made had a huge impact on having this deal made, a huge impact.