US-Iran Peace Deal Text Agreed, Signing Expected Sunday

President Donald Trump announced Saturday that a peace deal to end the United States' war with Iran would be signed on Sunday, after Pakistan confirmed both sides had finalized the text of what diplomats are calling the Islamabad Declaration. Trump posted on Truth Social that the Strait of Hormuz — a critical chokepoint for roughly one-fifth of global oil trade — would reopen immediately after signing.

The Islamabad Declaration

Pakistan's Prime Minister Shehbaz Sharif confirmed the two parties had reached a "final, agreed-upon text" for the peace agreement. The memorandum of understanding, named after Pakistan's capital in recognition of its pivotal mediation role, includes a commitment to reopen the Strait of Hormuz within 30 days. Under the terms, Iran's stockpile of 440 kilograms of enriched uranium will remain in Tehran while follow-on nuclear negotiations continue for 60 days.

A formal signing ceremony is expected in Geneva, Switzerland. Trump targeted Sunday as the date, while Iranian officials described the country as still holding "final deliberations" on the agreed text.

Pakistan's Central Role

Pakistan played a decisive role in bridging the gap between Washington and Tehran. Prime Minister Sharif and Field Marshal Asim Munir led the mediation effort, hosting the pivotal Islamabad Talks on April 11–12 at the capital's Serena Hotel — widely credited with breaking the diplomatic deadlock. Pakistan also facilitated the April 8 ceasefire that halted active fighting.

"The peace deal is closer than ever before and could be finalized in the next 24 hours," Prime Minister Sharif said Saturday.

Iran's Cautious Response

Iranian state media struck a guarded tone, with officials declining to confirm Sunday as the signing date. Tehran indicated it was conducting final internal reviews before any announcement. Complicating matters, an Israeli airstrike on Lebanon Saturday generated new regional tensions that Western diplomats warned could delay the ceremony.

Impact on Global Energy Markets

The potential reopening of the Strait of Hormuz is expected to have an immediate impact on global energy markets. The waterway handles roughly a fifth of global oil trade, and its effective closure during the conflict contributed to elevated prices worldwide. The US-Iran war has been the defining geopolitical event of 2026, and even an imperfect deal could provide meaningful relief to consumers.