US and Iranian officials said on Sunday that they have agreed on a framework to end the war, lift the US blockade of Iranian ports and reopen the Strait of Hormuz.
While still a framework, and with details yet to be announced, the deal marks the biggest breakthrough towards resolving the conflict after nearly four months.
The announcement came as a relief to world leaders anticipating lower energy prices once free trade resumes in the Gulf.
Allies in Europe, who have faced pointed criticism from Donald Trump over their perceived lack of support for the US, said they were ready to support Washington’s goals.
But within hours of the announcement, the deal was already under strain as Israeli officials vowed to continue operations in Lebanon, while Tehran said the agreement must cease the fighting in all regions.
Here’s how the world reacted to Donald Trump’s peace deal announcement:
Europe backs deal and the need to reopen the Strait
Europe responded to the news, hopeful that the Strait of Hormuz could reopen and repair the damage wrought on their economies by inflated energy prices.
European Commission president Ursula von der Leyen said the priority was the “swift and full implementation” of the agreement by all parties, adding that “freedom of navigation must be restored toll-free”. She also said peace was impossible “while Lebanon is in flames”.
The memorandum of understanding is scheduled to be officially signed on Friday in Switzerland. Donald Trump said the Strait of Hormuz would also reopen, toll-free, from Friday.
The EU’s foreign policy chief, Kaja Kallas, said the deal marks a “potential breakthrough” in the conflict, and the bloc will now consider how it can be involved in the next phase.
A joint statement from E4 leaders Britain, France, Germany and Italy echoed the sentiment in saying: “Iran must never acquire a nuclear weapon. We stand ready to work with the US, Iran and the IAEA to this end.”
Sir Keir Starmer said that while “obviously nothing is guaranteed”, the framework agreement was “a very significant breakthrough”. He said he discussed the deal with Mr Trump on Saturday.
Iran and Pakistan’s mediator insist deal includes Lebanon
Lebanon has been a sticking point in negotiations, with Israel and Hezbollah ignoring calls from Mr Trump and others to stop their attacks on each other in recent weeks.
The precise terms of the deal were not immediately known, but Pakistani prime minister Shehbaz Sharif said both sides had declared “the immediate and permanent termination of military operations on all fronts, including in Lebanon”.
Iran’s national security council said war and military operations on all fronts, including Lebanon, would end permanently from Monday night.
Iran’s deputy foreign minister, Kazem Gharibabadi, said a more expansive agreement would be negotiated during a 60-day ceasefire period to follow, including sanctions relief for Iran.
Iran’s foreign minister, Abbas Araghchi, said Israeli attacks against Lebanon must be stopped completely, and that the US bears responsibility for implementing the deal on ending the war.
Israeli ministers insist upon right to continue operations
There was no immediate official reaction to the announcement from Israel, which has said it was not party to the US-Iran talks.
But several senior Israeli officials urged the military not to withdraw from captured territory in Lebanon, insisting the US agreement with Lebanon does not bind Israel.
Hawkish national security minister Itamar Ben-Gvir said on social media that “we are not partners to this agreement that does not ensure our security, and it does not bind us in any way”.
“We must not compromise on anything less than the dismantling of Hezbollah, we must not withdraw from any territory that our fighters have captured and cleared of terror infrastructure, we must not return to a situation where thousands of terrorists sit on the fences of northern settlements, and certainly we must not remain silent for a moment in the face of fire directed at the State of Israel,” he added.
Israel’s defence minister Israel Katz said in a statement on Monday that Israel would not withdraw from territory seized in Lebanon. If Iran attacks Israel due to events in Lebanon, Israel will retaliate, he maintained.
Muted reaction in the United States
Supporters and critics of Donald Trump were cautious not to prematurely celebrate the deal to end the unpopular war.
Republican Senator Lindsey Graham, a leading Iran hawk, praised the agreement but said he would be “watching closely” the coming negotiations on Iran’s nuclear programme.
“Under our law, any nuclear deal with Iran will be sent to Congress for review and a vote,” he said. “Congratulations to all in getting us to this point.”
Former Joe Biden administration State Department spokesperson Matthew Miller said Mr Trump had made important concessions to Iran, only to achieve the status quo that existed before he launched the war.
“We have no assurances the nuclear programme will ever be addressed, but Iran has shown the world it can take the global economy hostage and get something from the US in return,” said Mr Miller.
The latest Reuters/Ipsos poll, taken before the announcement, on June 3-8, showed that Mr Trump’s overall approval rating was just 35 per cent, driven in part by higher gasoline prices linked to the Iran war.
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