‘Let the oil flow!’: Trump says after US and Iran reach peace deal

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DUBAI/WASHINGTON - US and Iranian officials said on June 14 that they have agreed on a peace framework for a deal to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz, possibly leading to lower energy prices once oil shipments resume through the critical waterway.

“The Deal with the Islamic Republic of Iran is now complete,” Trump wrote on his Truth Social platform around 5:30pm local time in Washington on June 14, shortly after Sharif announced the agreement early on June 15 local time in Pakistan, which has served as a mediator.

The pact will be officially signed on June 19 in Switzerland, Sharif wrote.

The precise terms of the deal were not immediately known. Sharif said in a post on X that the pact called for “the immediate and permanent termination of military operations on all fronts, including in Lebanon”.

Trump said the Strait of Hormuz, a critical shipping lane for global energy supplies that Iran has effectively shut down for months, would open on June 19 and be “toll free”, and that a US naval blockade of Iran ports would also end.

“Ships of the World, start your engines. Let the oil flow!” Trump wrote.

Oil prices fell on the news. Brent crude futures fell 4 per cent in early trading on June 15, while ​US ⁠West Texas Intermediate slid more than 4.6 per cent.

Iran’s deputy foreign minister, Kazem Gharibabadi, said a more expansive agreement would be negotiated during a 60-day ceasefire period, including sanctions relief. The fate of Iran’s nuclear programme will also be addressed in those later talks, sources previously told Reuters.

Thousands of people have been killed, mostly in Iran and Lebanon, since US and Israeli forces first attacked Iran on Feb 28. Iran has struck Israel and Gulf states hosting US bases and has effectively blockaded the Strait of Hormuz, pushing up global energy prices. US forces have blocked Iranian ports in response.

There was no immediate reaction to the announcement from Israel, which has said it was not party to the planned US-Iran deal.

The Iran war has become a political liability at home for Trump and his fellow Republicans in Congress, with public opinion polls showing Americans deeply frustrated by rising gas prices ahead of November’s mid-term elections in which control of Congress will be decided.

But Trump has also faced pressure from members of his own party who insist that Iran’s nuclear programme must be completely shut down.

The agreement was struck despite an Israeli strike on Lebanon on June 14 that drew criticism from both Iran and Trump.

Iranian negotiator Mohammad Bagher Ghalibaf said Israel’s latest attack on the southern suburbs of Beirut, which Israel said targeted Iranian-backed Hezbollah militants, showed the United States lacks “the will and ability to fulfill your commitments” in a post on X.

Iran’s foreign ministry said it held the United States responsible for the attack. Iran warned of a “strong response”, and its top joint military command said the “finger (is) on the trigger” ready to fire at the “enemy’s heart”.

In a post on his Truth Social platform on June 14, Trump said: “This morning’s attack on Beirut should not have happened, particularly on a special day when we are so close to a Peace Deal with Iran.”

Prime Minister Benjamin Netanyahu has differed with Trump over American demands that Israel curb its military action in Lebanon to allow the US to reach a deal with Iran.

Israel has said it will retain freedom of operations in Lebanon, while Iran has made a full ceasefire there an important component of its demands.

Trump updated Netanyahu on the progress toward a peace deal during a phone call on June 14, Israel’s N12 reported, citing a senior official.

Deal terms

A senior Iranian official earlier told Reuters that, under the terms of the draft deal, the United States would agree to release US$25 billion of frozen Iranian assets, while Iran would agree not to produce or acquire nuclear weapons.

The official said Iran agreed to maintain the nuclear status quo, including no uranium enrichment or expanding nuclear facilities, until a final deal is reached.

A US official, speaking before the deal was announced, said the agreement would ultimately lead to the dismantling of Iran’s nuclear programme, with its stockpile of highly enriched uranium to be destroyed and removed.

A senior Iranian official said the draft deal would allow Iran, which denies seeking a nuclear bomb, to dilute its enriched uranium inside the country.

Qatari negotiators flew to Tehran on the morning of June 14 as part of efforts to finalise the agreement, a source with knowledge of the situation told Reuters.

At pro-government rallies across Iran on the night of June 13, residents and news agencies reported that hardliners opposed to the framework agreement loudly voiced their dissatisfaction.

A resident in the north-eastern city of Mashhad told Reuters that some protesters chanted “Death to the compromiser,” in an apparent reference to Foreign Minister Abbas Araqchi. REUTERS