U.S. and Iran Formally Sign Landmark Peace Agreement in Switzerland

In a major diplomatic shift, U.S. President Donald Trump and Iranian officials have signed a formal Memorandum of Understanding (MOU) in Switzerland, bringing an official end to months of active combat. The agreement, mediated by Iranian Prime Minister Shehbaz Sharif, mandates the immediate lifting of the U.S. naval blockade on Iranian ports and the reopening of the Strait of Hormuz. Crucially, the pact includes an explicit ceasefire in Lebanon, compelling an immediate halt to military operations between Israeli forces and Hezbollah. The economic impact of the signing was felt instantly across global markets. Oil prices plunged by more than $8 per barrel as the "war premium" evaporated, while stock futures in the U.S. surged. As part of the de-escalation protocols, the U.S. has begun the process of releasing $25 billion in frozen Iranian assets. Military activity has also stilled; the U.S. military confirmed no hostile drone engagements in the last 12 hours, marking the longest period of calm since hostilities escalated in February. The nuclear component of the agreement establishes a "status quo" freeze. Iran has pledged not to develop nuclear weapons or expand its current enrichment facilities, while the U.S. has committed to non-interference in Iran’s internal affairs. While the naval blockade is over, comprehensive economic sanctions and the eventual dismantlement of Iran's highly enriched uranium stockpile are scheduled to be addressed in a second phase of technical negotiations set to begin in 60 days. Regional allies, including Saudi Arabia and Gulf states, have expressed optimism regarding the restoration of energy security in the Persian Gulf.