The deal also includes plans to reopen the strategically vital Strait of Hormuz to international shipping.

US President Donald Trump announced the breakthrough on Sunday, describing it as a major diplomatic achievement that would help restore stability across the Middle East.

According to Trump, the agreement provides for the immediate cessation of military operations between the two countries and paves the way for the resumption of maritime traffic through the Strait of Hormuz.

"The deal with the Islamic Republic of Iran is now complete," Trump said in a post on Truth Social, adding that shipping through the waterway would resume without tolls and that the US naval blockade would be lifted.

Iran later confirmed the agreement, with Deputy Foreign Minister Kazem Gharibabadi stating that Tehran had agreed to the framework, which is intended to immediately halt hostilities and open the door to broader diplomatic engagement.

The Strait of Hormuz, one of the world's most important energy transit routes, has faced severe disruptions since military tensions intensified following US and Israeli strikes against Iranian targets in late December.

The reopening of the waterway is expected to ease concerns over global energy supplies and international shipping.

The announcement followed extensive diplomatic efforts involving regional and international actors. Prime Minister Shehbaz Sharif said Pakistan helped facilitate discussions alongside mediation support from Qatar, Saudi Arabia and Türkiye.

Sharif described the agreement as a commitment by both sides to permanently end military operations and begin a new phase of diplomatic engagement.

 He said mediators would oversee a series of technical meetings ahead of the official signing ceremony.

The breakthrough comes after days of uncertainty surrounding the negotiations, particularly following renewed tensions involving Israeli military operations in Lebanon. Observers had expressed concern that regional developments could derail efforts to secure a ceasefire.

International leaders welcomed the announcement.

UK Prime Minister Keir Starmer called for the swift implementation of the agreement and emphasized the importance of restoring freedom of navigation through the Strait of Hormuz to support global economic stability.

French President Emmanuel Macron also praised the accord, describing it as the result of sustained diplomatic engagement by multiple partners.

 He urged all parties to fully implement the agreement and stressed that the reopening of the strategic waterway is essential for regional security and the global economy.

US Vice President JD Vance characterized the deal as a potential turning point for the Middle East, expressing hope that it could usher in a new era of regional stability while reducing tensions surrounding Iran's nuclear program.

If successfully implemented, the agreement could mark one of the most significant diplomatic developments in the Middle East in recent years, easing military tensions, restoring a critical global shipping route, and creating momentum for broader negotiations on regional security and nuclear issues.