Pakistani Prime Minister Shehbaz Sharif announced on June 12 that the United States and Iran have reached an agreed-upon text for a peace deal framework, potentially ending a conflict that has stretched beyond 100 days and rattled global markets from oil to crypto.
Iranian Foreign Minister Abbas Araghchi echoed the optimism, stating that peace has never been closer. The full details of the agreement are expected to be made public soon.
A conflict that reshaped markets
The 2026 Iran war began on February 28, with military engagements from the US and Israel against Iran quickly escalating into a regional crisis. The most consequential economic fallout came from the closure of the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil passes daily.
The path to this framework was not a straight line. On April 8, a two-week ceasefire was declared, facilitated by Pakistan’s diplomatic intervention. That temporary pause gave negotiators space to work, but it expired without a permanent resolution. By May, reports surfaced of a tentative 60-day memorandum of understanding that would cover ceasefire extensions and address Iran’s nuclear program.
