The United States and Iran have announced a framework agreement to end a conflict that has lasted for more than three months now, with both sides confirming that a formal Memorandum of Understanding is expected to be signed in Switzerland on Friday, June 19.US President Donald Trump announced the US-Iran peace deal on his Truth Social platform. (Reuters)The proposed deal includes ending military operations, reopening the Strait of Hormuz and lifting the US naval blockade, while leaving Iran's nuclear programme to future negotiations, news agency Associated Press (AP) reported.Pakistan, which served as a mediator, announced that both countries had reached an understanding calling for "the immediate and permanent termination of military operations on all fronts, including in Lebanon."Also read | Oil prices drop over 4%; Japan's Nikkei, South Korea's Kospi surge after US-Iran peace deal reachedThe exact text of the agreement has not yet been made public and is expected to be released only after the official signing.Trump declares the deal completeUS President Donald Trump announced the breakthrough on his Truth Social platform, saying, “The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow! President DONALD J. TRUMP”In a separate statement, Trump described the agreement as a historic achievement and said, “This Great Deal will bring Peace and Security to the whole Region. Many presidents have tried to make Peace with Iran, and all have failed before me. The Leaders of the Region have, for the first time, found a President who can help them achieve real Peace. With the opening of the Strait upon the signing of the Deal on Friday, for purposes of mine removal, oil will flow on both ends again for the Region, and the World! President DONALD J. TRUMP”Iran confirms deal but sets conditions for next talksIran's Deputy Foreign Minister for Legal and International Affairs Kazem Gharibabadi confirmed the agreement and said Tehran would enter a proposed 60-day negotiation period only after verifying that Washington had fulfilled its commitments.Also read | US-Iran deal signed? Trump, White House give clear signal ahead of UFC night - WatchAccording to Iran's state-affiliated Press TV, he said, "The enemy that had launched an attack to carry out its sinister objectives suffered defeat in all its goals, and the Islamic Republic of Iran achieved great victories in the war. The memorandum of understanding was not just a product of diplomacy, but is indebted to Iran's military achievements. It is indebted to the pure blood of the martyrs we gave in confronting the enemies of the establishment. After the official signing, the text of the memorandum of understanding will be published. On Friday, we will have an official signing, and the heads of the two delegations will hold discussions to determine the future arrangements for negotiations."He further added, "Entering into 60 days of negotiations is conditional upon the fulfilment of these commitments by the United States."Strait of Hormuz reopeningOne of the most significant elements of the agreement is the proposed reopening of the Strait of Hormuz, a critical global energy route. US and Iranian officials said they had agreed on a framework to end the war, halt the US blockade of Iran and reopen the waterway.Also read | Will Trump attend US-Iran deal signing in Switzerland? JD Vance reveals logistics of treatyHowever, implementation is expected only after the agreement is formally signed on Friday.Nuclear issue to be discussed separatelyAlthough the framework addresses the conflict and blockade, the future of Iran's nuclear programme remains unresolved and will be negotiated separately.Trump told the New York Times that if Iran failed to reach a final nuclear accord with the United States, he would restart military attacks on Tehran or make the United States "the guardian of the Middle East" in return for 20% of the region's revenues.Lebanon remains part of agreementPakistan said the understanding covers "the immediate and permanent termination of military operations on all fronts, including in Lebanon."Lebanon had emerged as a major sticking point during negotiations, with Israel and Hezbollah continuing attacks despite repeated calls for restraint. Iran's Supreme National Security Council Secretariat later stated that war and military operations on all fronts, including Lebanon, would end permanently starting Monday night.There was no immediate reaction from Israel, which has maintained that it was not part of the US-Iran negotiations.Markets react positivelyFinancial markets responded swiftly to the announcement. Oil prices fell sharply after news of the agreement, reflecting expectations that energy supplies could stabilise if the Strait of Hormuz reopens.US benchmark West Texas Intermediate dropped 4.70 percent to $80.89 per barrel, while Brent crude declined 4.03 percent to $83.81, news agency Reuters reported. Asian equity markets also rallied. Japan's Nikkei 225 index rose 4.99 percent, while South Korea's Kospi index gained 5.54 percent.Meanwhile, the US dollar weakened to a 10-day low against major currencies as investors shifted toward riskier assets. The dollar index fell 0.31 percent to 99.492, while the euro, pound sterling, Australian dollar and New Zealand dollar all strengthened.European powers signal readiness to lift sanctionsThe United Kingdom, France, Germany and Italy welcomed the agreement and said they were prepared to ease sanctions on Iran if there are verifiable steps on its nuclear programme.Their joint statement said, "We are prepared to lift relevant sanctions in response to clear, verifiable steps by Iran on its nuclear programme. We will work intensively with the US, Iran and regional partners to seize this moment, maintain momentum and achieve a long-term diplomatic settlement."It added, “Iran must never acquire a nuclear weapon. We stand ready to work with the US, Iran and the IAEA (International Atomic Energy Agency) to this end.”(With inputs from agencies)