World leaders express optimism for peace deal

US Vice President JD Vance has said that he hopes text from the purported agreement with Iran will be released this week, as further negotiations on the deal were set to continue.

Speaking to CNBC, Vance said the US “expects” the economically vital Strait of Hormuz to be opened without tolls for the long term.

“Our expectation is that the Strait is going to be opened in a toll-free way on a long-term basis,” Vance said.

“That’s the sort of thing that we’re going to figure out in these technical negotiations,” he said.

“You know that there are a lot of very important details to figure out that we’re actually going to sit at the table and discuss together and figure out a path forward.”

The claim from President Donald Trump that the framework deal would include a provision to restore free movement through the Strait — the norm up until February of this year — buoyed the markets and led a falling oil prices on Monday.

But it’s still not entirely clear that the deal will achieve this, or under what terms.

It may hinge on other issues like sanctions relief for Iran, an end to hostilities in Lebanon between Israel and Hezbollah, or the outcome of talks on Tehran’s nuclear or missile programs.

Nevertheless, the “framework” is being billed as the biggest step towards resolving the conflict that began at the end of February. It was then somewhat calmed by a partial ceasefire in early April that still failed to fix reciprocal naval tensions in the Persian Gulf.

Vance said that Iran’s foreign minister and house speaker would represent Iran at a signing in Switzerland, without saying who would represent the US.

A potential US-Iran deal to end the war and reopen the Strait of Hormuz could ease the global energy crunch, but oil prices and supplies may take months to stabilize as shipping restarts and infrastructure recovers.

Once the strait reopens, ensuring the free flow of traffic “might take eight weeks, perhaps longer, depending on how long each step takes,” Neil Crosby, head of research at market intelligence firm Sparta Commodities, told DW earlier this month.

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Iranian Foreign Minister Abbas Araghchi held a phone call with his Turkish counterpart Hakan Fidan on Monday where they discussed the ceasefire announcement.

Abbas said that Israeli attacks against Lebanon must stop under the deal, according to a readout on Telegram.

Fidan expressed optimism about the announcement but warned against any potential “provocations” that could derail the agreement.

Abbas also held separate calls with the foreign ministers of Egypt and Iraq, his office said.

Israel continued to launch artillery and air attacks at southern Lebanon overnight, despite news of the tentative ceasefire agreement.

Lebanon’s state-run National News Agency (NNA) reported fresh Israeli attacks near the southern city of Nabatiyeh.

On Monday morning, local authorities in Nabatiyeh urged residents against returning to the city “under any circumstances,” citing continued security risks.

Israel did not immediately comment on the reports, but the Israeli military said it intercepted a drone from Lebanon overnight.

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Hezbollah has not officially commented on the announcement but Lebanese parliament speaker Nabih Berri, a Hezbollah ally who acts as an intermediary between the group and the US, thanked both sides for their “an essential and binding clause on halting the Israeli aggression on all of Lebanon.”

Lebanese President Joseph Aoun said in a statement on Monday that he hoped the peace deal would put a “definitive end” to the conflict between Israel and Hezbollah.

Aoun praised the US-Iranian memorandum of understanding for affirming that “Lebanon’s security and safety are an integral part of any effort to consolidate stability in the region.”

Meanwhile, an unnamed Lebanese security he terms of the agreement or the time of the ceasefire.”

UN human rights chief Volker Türk welcomed news of a tentative ceasefire deal and called on all sides to “exercise maximum restraint” during what he called a “fragile moment.”

“I welcome ​the ‌announcement that the United States and Iran have ‌agreed on a peace deal ‌that ​provides for an immediate and permanent ceasefire, the reopening of ​the Strait of Hormuz, and a framework for further ⁠negotiations,” Türk said in a briefing on Monday morning.

“At this fragile ​moment it ‌is clear all sides need to exercise ​maximum ⁠restraint and work to implement ⁠the ​agreement reached quickly and in good faith,” Türk said.

Türk also called for an immediate end to hostilities in Lebanon, where Israel and Hezbollah are engaged in a conflict, and called on Israel to withdraw from the south of the country. He called for a probe into whether the parties to the conflict had committed violations of international law.

Saudi Arabia welcomed the ceasefire announced by the United States and Iran as a basis for initiating detailed peace negotiations.

The kingdom’s Foreign Affairs Ministry insisted that the ultimate deal should “take into consideration the security interests of regional states, sticking to the principle of non-interference in the interior affairs of other countries.”

Iran has struck Saudi Arabia a number of times during the conflict, primarily targeting US bases in the Gulf nation.

Neighboring Qatar, which depends on the Strait of Hormuz to export gas, also welcomed the announcement.

In comments published by the state-run Qatar News Agency, Doha’s Foreign Ministry called it “an important step toward consolidating sustainable peace and promoting economic growth regionally and internationally.”

European leaders welcomed the news of a ceasefire deal between the United States and Iran but said the announcement must be followed by action.

EU chief Ursula von der Leyen said the “priority now is its swift and full implementation.”

She called for the immediate resumption of toll-free transit through the Strait of Hormuz, for an end to Iran’s nuclear program and for the ceasefire to apply in Lebanon, where Israel has been conducting strikes against Hezbollah.

“Of course there can be no peace in the Middle East while Lebanon is in flames,” von der Leyen said. “Once again Europe calls on all parties to respect Lebanon’s sovereignty and territorial integrity and implement a genuine ceasefire.”

British Prime Minister Keir Starmer also welcomed the announcement but work must still be done to secure a lasting peace.

“Obviously, ​nothing is guaranteed, but it is, I ​think, a significant breakthrough, a very significant ⁠breakthrough,” Starmer told a press conference on Monday morning.

“Hopefully, ​something which ​as we work ​together we ‌can turn into that enduring peace ​that ⁠we all want to ⁠see.”

The comments on Monday follow earlier reactions from the likes of Germany’s Friedrich Merz, who stressed the deal must be implemented with “determination,” and France’s Emmanuel Macron, who similarly called for the “swift and full implementation” of the agreed-upon terms.

China has reacted positively to the news of a ceasefire deal between Iran and the United States that would reopen the Strait of Hormuz to international trade.

“China welcomes the agreement … and expresses appreciation for the mediation efforts made by Pakistan,” a Foreign Ministry spokesperson said on Monday.

China “hopes that safe and free passage through the strait will be restored as soon as possible,” the spokesperson said.

Pakistani Prime Minister Shehbaz Sharif said “the sun of peace has risen” on Monday after earlier announcing a preliminary ceasefire deal between the United States and Iran.

“Today, the world has seen a historic step toward peace,” Sharif told Pakistani lawmakers. “After the darkness of war, the sun of peace has risen.”

Pakistan has served as the primary mediator between the Washington and Tehran during the conflict.

Israel won’t withdraw from the land it seized in southern Lebanon, Defense Minister Israel Katz said on Monday.

Katz’s remarks were the first official Israeli comments after the United States and Iran announced a preliminary peace deal overnight that is set to be signed on Friday.

Iran has tied the deal to a cessation of Israeli strikes against Hezbollah in Lebanon, although the exact terms have not been announced.

However, in his remarks on Monday, Katz said that if Iran attacked Israel due to its actions in Lebanon, then Israel would retaliate by striking Iran with “great force.”

The detailed terms of the agreement, set to be signed in Switzerland on Friday, have yet to be made public. Here’s what we know so far:

• The Strait of Hormuz would reopen after the deal is signed on Friday, according to Trump. Tehran reiterated that timeline.
• A more expansive agreement is to be negotiated during a 60-day ceasefire period.
• The 60-day period would address Iran’s nuclear program.
• Iranian sanctions relief would also be negotiated.
• Pakistan, which announced the deal, has insisted it includes Lebanon. Israel, which has maintained its fight against Hezbollah, has yet to comment.
• On Saturday, Trump had implied the deal would not include Iran handing over its enriched uranium. This had been a key condition of Israel, which was not party to the talks.

On Monday, the European Union’s high representative for foreign affairs, Kaja Kallas, welcomed the preliminary deal between the US and Iran to end the war.

“This marks a potential breakthrough,” Kallas wrote on X. “It can give much needed space for deeper negotiations on Iran’s nuclear program and other critical issues. Once implemented, the deal should also ease the global energy crisis.”

Kallas said she had spoken with her Iranian and Gulf counterparts in recent days. She added that EU Foreign Ministers meeting later on Monday will discuss how the bloc can be closely involved in the coming phase.

“From economic leverage to nuclear expertise and longstanding relationships with Gulf partners, the EU stands ready to contribute to a sustainable resolution,” Kallas said.

Oil prices fell and shares rallied on Monday after the United States and Iran announced a tentative peace deal that would see the Strait of Hormuz reopened.

Brent crude oil — the international standard — fell over 4% to $83.82 per barrel in early trading.

“Ships of the world, start your engines. Let the oil flow!” Trump posted on his Truth Social platform.

Stock markets also reacted positively to the news. In Asia, Japan’s Nikkei and South Korea’s KOSPI each gained more than 5%. On Wall Street, futures for the S&P 500 were up 1% and for the Dow Jones Industrial Average up 0.9%, pointing to likely early gains.

But it could still take months for oil prices to stabilize, while shipping and insurance companies will also want to be confident that this latest ceasefire announcement will hold.

“Markets are likely to be cautious in not over-extending optimism as they watch for an actual resumption of traffic across Hormuz,” analysts from Japan’s Mizuho Bank said in a commentary.

Meanwhile, as Europe woke up on Monday, European Central Bank President Christine Lagarde ⁠told ⁠France Culture radio ​that the ceasefire agreement reached ​with Iran ​was “good ‌news.”

Good morning and welcome to DW’s coverage of the Iran war as we follow the announcement of a peace deal between the United States and Iran.

On Monday, the EU’s foreign policy chief, Kaja Kallas, hailed the “potential breakthrough.” She said she hoped that it would help with the global energy crisis.

Oil prices fell immediately after the announcement, but analysts believe it will take months for prices to truly stabilize if this latest announcement holds.