Washington – U.S. President Donald Trump announced that the United States and Iran have reached a peace agreement that could reshape the geopolitical landscape of the Middle East, paving the way for the reopening of the strategically vital Strait of Hormuz and the lifting of the U.S. naval blockade on Iranian ports.

In a post on Truth Social, Trump declared that the agreement with the Islamic Republic of Iran was “complete” and authorized the toll-free reopening of the Strait of Hormuz, one of the world's most critical oil shipping routes.

“Congratulations to everyone! I hereby fully authorize the toll-free opening of the Strait of Hormuz and simultaneously authorize the immediate lifting of the United States naval blockade. Ships of the world, start your engines! Let the oil flow!” Trump wrote.

The announcement followed remarks by Pakistani Prime Minister Shehbaz Sharif, who said Pakistan had served as a mediator in the negotiations and confirmed that a formal signing ceremony is scheduled to take place in Geneva, Switzerland, on Friday.

Energy markets reacted swiftly to the news, with oil prices falling to three-month lows amid expectations that maritime traffic through the Persian Gulf would normalize and global crude supplies could increase.

The Strait of Hormuz is regarded as one of the world's most important energy chokepoints, handling a significant share of global oil exports from the Middle East. Its reopening would ease geopolitical tensions and help reduce concerns over disruptions to international energy supplies.

Despite the breakthrough, important questions remain regarding the exact terms of the agreement. Washington and Tehran have presented differing accounts of what will follow after the signing ceremony, leaving analysts and policymakers awaiting further details.

U.S. Vice President J. D. Vance said that if Iran fulfills its commitments, the agreement could transform the Middle East and usher in a new period of regional stability.

The planned signing ceremony in Geneva is expected to attract global attention from governments, investors, and energy industry leaders, as the deal could represent one of the most significant diplomatic developments in recent years.