Early on Monday (June 15), US President Donald Trump claimed that an understanding had been reached with Iran. Earlier, Pakistani Prime Minister Shehbaz Sharif also indicated that the two sides had made progress toward an agreement.
According to reports, the deal could be formally signed in Switzerland next Friday, although its detailed terms have not yet been made public.
Shehbaz Sharif said the understanding would include a halt to ongoing military operations in several areas, including Lebanon. Iran has also announced that all military activities will be suspended from Monday night.
Trump further stated that normal shipping operations through the Strait of Hormuz would resume from next Friday. He added that US sanctions affecting Iranian ports would also be lifted.
The announcement prompted a drop in international oil prices and had a positive impact on several Asian stock markets.
Iranian Deputy Foreign Minister Kazem Gharibabadi said that if the ceasefire remains in effect for the next 60 days, discussions could begin on a broader agreement covering sanctions removal and Iran's nuclear program.
The conflict had previously resulted in significant casualties in Iran and Lebanon. Uncertainty surrounding the Strait of Hormuz during the crisis had also pushed global energy prices higher.
However, key details of the proposed agreement, the future of Iran's nuclear activities, and any final decision on sanctions relief are expected to emerge only after further negotiations in the coming weeks.