Oil prices in early trade in Asia have fallen off the back of a US-Iran deal under which the Strait of Hormuz is set to be reopened.

Brent crude, the global oil benchmark, was 3.8% lower at $84.02 (£62.48) a barrel, while US-traded oil was down 4.1% at $81.40.

Pakistan says the agreement will be officially signed on Friday in Switzerland while US President Donald Trump has posted on social media about the deal, saying "oil will flow".

The strait had been effectively closed since shortly after the US and Israel launched airstrikes on Iran on 28 February.

Uncertainty partially lifted but signing of deal still days awaypublished at 00:55 BST 15 June

00:55 BST 15 June

Sebastian Usher
Global affairs correspondent

For Iran's Arab Gulf neighbours, there will be a sense of relief that at least for now there could be an end to the threat of Iranian missiles targeting them - a tactic that has raised questions about the very nature of the economic model followed by the UAE, Qatar and Saudi Arabia.

As for the most essential element of any deal from the US perspective, it's unclear for now how far this agreement goes in providing guarantees and mechanisms that will prevent Iran from ever developing a nuclear weapon.

That was the danger that the US and Israel said they were tackling in going to war.

There are indications from what the Iranian media has reported to be in the deal that such a mechanism may have been set up, but that will need to be clarified and is likely to be the subject of intense negotiation after the deal is signed.

That ceremony is still several days away.

With all the dramatic twists and turns that this process has taken over recent weeks, no-one can be sure that the path towards that day will be straightforward.

But for now, some of the uncertainty over the conflict – which for weeks had wavered between ceasefire and military confrontation – has at least been partially lifted.

Respite for Lebanon unclearpublished at 00:47 BST 15 June

00:47 BST 15 June

Sebastian Usher
Global affairs correspondent

Finally after what has seemed like countless false starts, a deal has been agreed by the US and Iran.

Both sides have predictably claimed victory. Donald Trump has boldly declared: "This Great Deal will bring Peace and Security to the whole Region." Iran's deputy foreign minister Kazem Gharibabadi hailed what he called his country's military achievements.

All sides, and mediator Pakistan, say the deal will see the lifting of Iran's closure of the Strait of Hormuz and the US blockade of Iranian ports, although this may not be immediate.

That will go some way to relieving pressure on Trump over the harm to the global economy caused by the former, while Iran's collapsing economy will gain some relief from the latter.

Pakistani Prime Minister Shehbaz Sharif says the agreement also calls for the "immediate and permanent termination of military operations on all fronts, including in Lebanon".

That could be a tall order.

Israeli Prime Minister Benjamin Netanyahu has shown no sign so far of being prepared to end Israel's offensive against Hezbollah in Lebanon.

Indeed, twice in just the past week, Israeli strikes on the southern suburbs of Beirut in response to Hezbollah rockets crossing into northern Israel have come close to derailing the whole process.

Iran only just pulled back from responding with another missile attack on Israel in order to get the deal across the line.

It's unclear if the agreement will provide a respite to Lebanon, where two recent ceasefires have failed to take hold.

Iranian state media is reporting what is says are the draft details of a 14-point memorandum of understanding between the US and Iran.

The specific points have not been officially confirmed by either country.

Mehr News Agency, a semi-official Iranian state news outlet, says the points include:

• A permanent ceasefire on all fronts, including Lebanon
• US commitment not to interfere with Iran's internal affairs
• Lifting of US naval blockade within 30 days
• US withdrawal of forces from Iran
• Reopening the Strait of Hormuz within 30 days "under Iranian arrangements"
• The US and its allies delivering reconstruction plans for Iran worth at least $300bn
• Ending sanctions on Iranian oil and energy products
• Reiteration of Iran's commitment not to produce nuclear weapons
• US commitment not to increase its forces in the region and not impose new sanctions

Mehr also reported that "final negotiations will not begin before half of Iran's frozen funds are released, Iran's oil sanctions are suspended, and the naval blockade is lifted".

It said the final agreement would be approved by a UN Security Council resolution.

In a joint statement about the deal, the leaders of the UK, France, Germany and Italy say they will work closely with the US, Iran and regional partners to "seize this moment".

"We congratulate the United States, the Iranian government and all those involved, including Pakistan, Qatar and all other mediators, on this diplomatic breakthrough," the group, known as the E4, says.

“This is a moment of opportunity to restore regional stability and stabilise the global economy."

The leaders called for the agreement to be "implemented rapidly and comprehensively" and that the "urgent reopening of the Strait of Hormuz with unconditional and unrestricted freedom of navigation is essential".

The group emphasised that Iran "must never acquire a nuclear weapon" and that they are "prepared to lift relevant sanctions in response to clear, verifiable steps by Iran on its nuclear programme".

"We will work intensively with the US, Iran and regional partners to seize this moment, maintain momentum and achieve a long-term diplomatic settlement."

The leaders also reaffirm their support to the "stability, sovereignty and territorial integrity of Lebanon".

How quickly shipping will return to Strait of Hormuz remains to be seenpublished at 00:08 BST 15 June

00:08 BST 15 June

Jonathan Josephs
BBC business reporter

Donald Trump's post suggests that the Strait of Hormuz will reopen as part of what has been agreed with Iran.

It’s a vital waterway for global trade - before the conflict 20% of oil and gas supplies flowed through the Strait.

But it's likely to take some time before maritime traffic returns to pre-war levels because shipping companies will want to see that the deal is holding.

The world's biggest shipping lines have repeatedly emphasised that the safety of their crews and vessels is their top priority.

The first movements are likely to be eastwards so that the approximate 2,000 ships with some 20,000 seafarers can leave the Persian Gulf for the first time since the fighting began at the end of February.

The most relevant precedent is the closure of the Red Sea route in the aftermath of October 7 attacks. After that it took the major shipping lines two years to start to phase in a return.

It's likely the return to the Strait of Hormuz will be faster because it is more important to global trade and there is no alternative route.

But how quickly that happens remains to be seen.

Image source, Reuters

Image source, AFP via Getty Images

French President Emmanuel Macron says G7 leaders, who are meeting this week in the French resort town of Evian, will discuss the long-term reopening of the Strait of Hormuz as part of the US-Iran deal.

"The aim will be to see the consequences of this agreement, support for Lebanon, the lasting reopening of Hormuz and of course the concluding of an accord on nuclear and ballistic activities in Iran," Macron said in a video on Instagram.

Leaders from Britain, Canada, Germany, Italy, Japan and the United States are meeting from Monday 15 June for the three-day summit with other countries such as India and Brazil also taking part in the gathering.

Ghoncheh Habibiazad
Senior reporter, BBC Persian

Iran's top military command, Khatam al-Anbiya Central Headquarters, has said that Iranians, together with the country's armed forces and Tehran's proxies and allies in the region, have shown the US and Israel that they have "no option but to accept defeat and surrender".

The statement is in line with the way Iran's state television has been trying to portray the deal as a victory for Iran. There had been mounting criticism within Iran from hardliners opposed to the deal.

Some of those who criticised the deal accused Iran's foreign minister and parliament speaker, both of whom played key roles in the negotiations, of "betraying" Iran's late Supreme Leader, Ayatollah Ali Khamenei, who was killed in US-Israeli strikes on the first day of the war, on 28 February.

Khamenei had said weeks before his death that negotiations with US were not "wise" and would not "resolve" the country’s problems.

Image source, AFP via Getty Images

US President Donald Trump has just posted again about the US-Iran agreement, saying he has succeeded where others have failed.

"This Great Deal will bring Peace and Security to the whole Region," he writes on Truth Social.

"Many presidents have tried to make Peace with Iran, and all have failed before me. The Leaders of the Region have, for the first time, found a President who can help them achieve real Peace.

"With the opening of the Strait upon the signing of the Deal on Friday, for purposes of mine removal, oil will flow on both ends again for the Region, and the World!"

Image source, Bloomberg via Getty Images

Responding to news of an Iran peace deal, UK Prime Minister Sir Keir Starmer calls it "a hugely important step forward in ending the war, ensuring regional stability, and re-opening the Strait of Hormuz".

"I congratulate President Trump and the mediators from Pakistan, Qatar and elsewhere who have contributed to this breakthrough. We have long urged de-escalation and this is the progress we had hoped to see.

"We are clear that toll-free freedom of navigation must now be restored in the Strait of Hormuz, to begin easing the severe economic impacts that have been felt for several months – on families here in the UK and around the world.

"We will continue to work with partners to support this – including, if required, through standing up the defensive, independent multilateral mission which the UK and France have taken a leading role in planning up to this point, particularly to offer support on mine clearance in an agreed way.

"For any peace to endure, it is essential that the commitments made, particularly in relation to Iran’s nuclear programme, are robust, verifiable, and fully implemented. It remains the UK's firm and longstanding position that Iran must never have a nuclear weapon."

Image source, Getty Images

The prime minister of Qatar, who acted as a mediator alongside Pakistan, has welcomed the agreement between the US and Iran.

"We extend our thanks to our brothers in the Islamic Republic of Pakistan," Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani writes on X.

"We look forward to all parties engaging in the forthcoming negotiations in a positive and constructive spirit that will help consolidate this progress and build upon it."

AFP is reporting that US Vice-President JD Vance plans to attend the deal signing in Geneva on Friday, and it is possible Trump will also sign.

Media outlets in the US in recent days had reported that Vance would be the most likely person to travel to an in-person signing of the agreement and that it was expected to be in Vienna, inspiring many to closely track the vice-president's movements as well as the positioning of US aircraft.

Image source, Getty Images

Details remain scarce on US-Iran dealpublished at 23:24 BST 14 June

23:24 BST 14 June

Anthony Zurcher
North America correspondent

The announcement of an Iran deal has provided Donald Trump with a very welcome birthday present – although one that comes wrapped in uncertainty.

In his social media post heralding the agreement, the US president said that the Strait of Hormuz would be open to commercial shipping and the US would lift its naval blockade.

“Let the oil flow!” Trump exclaimed.

Beyond that, however, details are scarce.

It appears that the fate of Iran’s nuclear programme – Trump’s stated reason for beginning the war – is subject to further negotiation.

And if there’s one thing clear after decades of efforts to cajole and coerce Iran into giving up its nuclear ambitions, there are no guarantees that progress will me made even if a "memorandum of understanding" sets out the framework for diplomatic talks.

At minimum, however, Sunday’s deal should help alleviate, if not entirely remove, some of the strain that the ongoing conflict had placed on the global economy – and some of the political pressure that has been building on Trump as a result.

It helps return things to the way they were before the start of the war, even if Trump’s larger goals remain unrealised for now.

Iran's Deputy Foreign Minister Kazem Gharibabadi has confirmed in a phone call on state TV that a deal with the US has been finalised and the official signing will happen in Switzerland on Friday.

"An immediate and permanent end to the war and military operations on different fronts including Lebanon will be announced tonight," he says.

He adds that the US naval blockade against Iran will also be lifted tonight.

Israel and Hezbollah is key to whether this deal will lastpublished at 23:00 BST 14 June

23:00 BST 14 June

Joe Inwood
World news correspondent

Getting to this point has taken weeks of careful negotiation, with Pakistani mediators balancing the competing, often contradictory, demands of Tehran and Washington.

In the end, they seem to have managed to get both sides to agree to the same deal, reopening the Strait of Hormuz and lifting the US blockade, according to Trump, and ending the fighting - including in Lebanon.

What is interesting about the brief statement by Pakistan’s Prime Minister, Shabaz Sharif, is that it makes no direct mention of Israel or the Lebanese armed group Hezbollah.

The fighting between the two has been - and remains - the most likely flashpoint in the region, as has been demonstrated once again today.

Getting them to go along with this deal - which will be signed on Friday - is vital if it is to last.

Bernd Debusmann Jr
White House reporter

I'm currently at the White House, which has been buzzing with activity for much of the afternoon as it gears up for the highly anticipated UFC "Freedom 250" event on the South Lawn in a few hour's time.

While we heard from President Trump on Truth Social, we haven't seen him on-camera yet today.

According to his publicly available schedule, Trump is currently participating in a family dinner at the White House.

He will later attend a VIP reception for the UFC event, before headed out to the South Lawn for the fights at approximately 1945e (0145b).

If we do hear from him, he's likely to claim a victory, both in the war and the subsequent negotiations.

While he'd been publicly dismissive of domestic pressures, poll after poll has shown that many Americans are concerned with petrol prices.

Any indication that a meaningful deal has been reached will come as a relief to them - and to the administration.

Ghoncheh Habibiazad
Senior reporter, BBC Persian

Image source, IRINN

Iran state TV news channel has announced that a deal has been reached between Iran and the US, but attributed the news to the statement by Pakistan’s Prime Minister.

In the announcement by state TV, the presenter says that the US “was forced to sign an agreement to end the war with the Islamic Republic of Iran and the Resistance Front”.

State TV and some Iranian outlets are framing the deal as a victory for Iran. We are yet to see an Iranian official commenting on reaching the agreement.

Image source, Getty Images

US President Donald Trump has confirmed Pakistan's report that the US and Iran have reached a deal.

"The Deal with the Islamic Republic of Iran is now complete," he writes on Truth Social.

"I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade," he says.

"Ships of the World, start your engines. Let the oil flow!"

Here is the full statement from Pakistan Prime Minister Shehbaz Sharif, who has just announced that a peace deal between US and Iran has been reached:

"Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED.

"Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon.

"The official signing ceremony will be on Friday, 19 June in Switzerland. We would like to thank the United States of America and the Islamic Republic of Iran for their commitment to finding a diplomatic solution to the conflict.

"We would also like to extend our sincere appreciation to our brothers in this mediation effort, the great leadership of State of Qatar, for their support in reaching this agreement.

"I would also especially thank the visionary leadership of Kingdom of Saudi Arabia and Republic of Türkiye for their immense contributions in this regard.

"With the agreement now in place, mediators will facilitate a series of meetings this week. These pre-implementation discussions will lay the foundation for the technical talks and the official signing ceremony."

A deal between the US and Iran has been reached, says Shehbaz Sharif, the prime minster of Pakistan, who has been acting as mediator.

"Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED," he writes on X.

"Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon."

He adds that the official signing ceremony will be on 19 June in Switzerland.

Iran and US officials are yet to comment on this announcement.