EXPLAINER

US President Donald Trump and Iranian leaders say a deal has been agreed to end more than 100 days of war that killed thousands.

United States President Donald Trump and Iran’s Deputy Foreign Minister Kazem Gharibabadi said on Sunday that they had reached an initial deal to end the war and to resume traffic through the Strait of Hormuz.

Trump said the deal allows for toll-free shipping through the Strait of Hormuz, which has been largely closed since the US and Israel launched an assault on Iran on February 28.

“The Deal with the Islamic Republic of Iran is now complete,” Trump wrote on Truth Social on Sunday.

The US and Iran will sign a memorandum of understanding in Switzerland on Friday, said the prime minister of Pakistan, whose country has served as a mediator.

Monday marks 108 days since the war began, with the US and Israel’s attacks on Iran. Here is what’s happening:

What we know about the deal

• The content of the agreement, which follows weeks of fraught negotiations and periodic threats from Trump of new hostilities unless Iran reaches a deal, remained unclear.
• Strait of Hormuz to reopen: Iran’s semi-official Mehr news agency said the draft deal called for reopening the Strait of Hormuz within 30 days under Iranian arrangements. Trump, who turned 80 on Sunday, said the deal allows for toll-free shipping through the Strait of Hormuz, which has been largely closed since the US and Israel launched an assault on Iran on December 28.
• Frozen assets to be released: Iran’s Mehr news agency reported that the US would release $12bn in frozen assets to Iran before the start of negotiations.
• Iran’s enriched uranium: In an interview with The New York Times on Sunday, Trump said Washington was still negotiating whether Iran would suspend its enrichment for 20 years. Trump hinted that he might settle for a 15-year suspension, but said he did not want to negotiate via the press.
• Israel has not commented: There has been no official comment from Israel about the peace agreement.

In Iran

• The secretariat of Iran’s Supreme National Security Council said on Monday that the deal with the US includes the immediate suspension of hostilities on all fronts. “Based on the agreements reached, the war and military operations on all fronts, including Lebanon, will end immediately and permanently as of tonight, and in addition, the naval blockade against Iran will end immediately and completely,” it said in a statement.

In the US

• Democrats slam Trump over war: While Democratic lawmakers welcomed the deal, they criticised the Trump administration’s decisions pertaining to the war. Senator Chris Coons of Delaware said that while the deal moves the situation in the “right direction”, several questions remain. He warned that competing interpretations of what was agreed upon could pose risks. Senator Chris Murphy, who serves on the Senate Foreign Relations Committee, said the deal is a “surrender to Iran” but that the US should be “glad about it because every day this insane, illegal war continues, we get weaker”.

In Lebanon

• Trump rebukes Israeli attack on Beirut: On Sunday, shortly before the deal was announced by Trump, Israel launched an air attack on Beirut. Trump angrily blamed Israel for delaying the deal’s signing after launching this attack. In an expletive-laden phone interview with US news outlet Axios, Trump fumed about Israeli Prime Minister Benjamin Netanyahu, saying: “I was so pissed off. I let him know.”

Global response

• Western leaders praise deal: UK Prime Minister Keir Starmer said he was ready to aid the further technical talks between the US and Iran, adding that he hopes the reopening of the Strait of Hormuz will stabilise energy markets.
• French President Emmanuel Macron also praised the deal and said Paris would support the Lebanese government.
• European Union chief Antonio Costa welcomed a deal between the US and Iran to end the Middle East war, adding that the bloc was ready to contribute to a strategy for “lasting peace”.
• UN Secretary-General Antonio Guterres said it was a “critical step” towards resolving the war in the Middle East.

Global economy

• Oil prices drop: Oil prices slipped to their lowest since March on Monday, with global benchmark Brent crude futures falling $4.08, or 4.7 percent, to $83.25 a barrel by 04:15 GMT. US West Texas Intermediate was at $80.53, down $4.35, or 5.1 percent. Both contracts fell to their lowest levels since March 10 on Monday after tumbling more than 3 percent on Friday.
• Asian markets soar: Markets in Japan soared, more than 5 percent up; in South Korea, they were up 5.3 percent; in Taiwan, they were up 2.4 percent. In Shanghai, they were up 1.3 percent; and in Hong Kong, they were up half a percent; while in Indonesia, they were up 2.07 percent; and in the Philippines, they were up 5.2 percent.