Pakistan’s Prime Minister Shehbaz Sharif confirmed on Friday that the United States and Iran have agreed on the full text of a peace agreement, ending weeks of diplomacy that followed the 2026 Iran war. The deal is being called the Islamabad Declaration, recognizing Pakistan’s central role as mediator.

President Donald Trump said he expected a signing ceremony in Geneva as soon as this weekend, with Vice President JD Vance representing Washington. Iran’s Foreign Ministry offered a cautious reading, saying reports of a finalized agreement were “premature” and that Tehran was still reviewing the final language.

The Islamabad Declaration commits both sides to a 60-day extended ceasefire, the immediate reopening of the Strait of Hormuz without tolls, and phased sanctions relief for Iran. Nuclear issues are deferred to a separate follow-on negotiating track.

The deal emerged after more than three months of direct talks in Islamabad and Doha, with Qatar and Pakistan serving as intermediaries. The conflict began on February 28 when the United States and Israel launched coordinated strikes on Iranian facilities.

Crude oil prices fell sharply on the news, with Brent crude dropping toward $90 a barrel. The prospect of the Strait fully reopening has driven the steepest monthly oil price decline since the Covid-19 pandemic.

Hard-line factions inside Iran’s parliament were reported to be preparing public objections. Israeli Prime Minister Netanyahu said Israel had not been consulted on the nuclear provisions. Vance warned that economic sanctions relief would only flow if Iran “meets its obligations.” The United Nations welcomed the diplomatic breakthrough. Earlier coverage of the Iran war ceasefire and the Strait of Hormuz closure provides full context. The oil price analysis from earlier in the week also remains relevant.