The BBC's Global Affairs Correspondent, Sebastian Usher, talks through what we know so far about the initial agreement announced by the US and Iran:

What the deal means for US and Iranpublished at 02:57 BST

02:57 BST

Tom Bateman
US State Department correspondent

This agreement was ripe for taking place.

Donald Trump has been under growing pressure from the sustained hike in petrol prices which was feeding through to the highest inflation rate in the US in three years.

Iran's economy was being throttled with long-term sanctions currently tightened by the US naval blockade of its ports.

Both sides needed a reprieve.

The deal's priority is to extend the 8 April ceasefire in time and scope – another 60 days pledging no hostilities, lifting the US blockade in return for Iran relinquishing its grip on the Strait of Hormuz, while both sides commit to talks.

We don’t have the text yet but on the basis of how the deal was being briefed by the administration late last week it does not solve in any conclusive way the issues that apparently motivated Trump’s attack in the first place, nor those which drove Iran’s aggressive retaliation.

To get to something each side can sell as a victory, Trump needs a long-term (at least 20 years), verifiable prohibition on nuclear enrichment by Tehran.

Iran needs comprehensive sanctions relief and access to tens of billions of dollars in frozen oil revenues. Those issues and their sequencing have always been core sticking points.

While the deal may contain commitments or "understandings" to talk further about, it does not, as far as we know so far, meaningfully agree on them.

And that's before even mentioning the demands of Israel and hawkish Republicans in Washington that a final deal must also tame Iran's conventional weapons programme and the funding of its armed allies in the region.

In announcing the memorandum of understanding between the US and Iran, all sides are "frantically trying to spin the text to make themselves look like the victor" says Andrew Peek, a former Deputy Assistant Secretary for Iran and Iraq at the US Department of State.

Speaking to the BBC, he said he thought all sides had "something to be happy and unhappy about".

Iran will be pleased with the inclusion of Lebanon in the deal, said Peek, while the US would be happy that there was no mention of tolls for ships travelling through the Strait of Hormuz.

Barbara Leaf, a former Assistant Secretary of State for Near Eastern Affairs, told the BBC that the "big get" of the new deal between the US and Iran is "restoring the status quo".

She accused the Trump administration of "mincing around, using a lot of wordplay to suggest that what is not going to happen, is actually going to happen", pointing to the unfreezing of Iranian assets as a key example.

Image source, Getty Images

Iran's deputy foreign minister says Qatari mediators held "nearly 14 to 15 hours of lengthy talks" in Tehran to reach an agreement on a draft memorandum of understanding between the US and Iran.

”This negotiation process took a long time," Kazem Gharibabadi told Iranian state media on Monday.

"A Qatari delegation was in Tehran yesterday to finalise discussions on the text of the Islamabad memorandum of understanding between Iran and the United States.

"Nearly 14 to 15 hours of lengthy talks took place, during which we presented the Islamic Republic of Iran’s final amendments to the text. Naturally, those amendments were accepted, and the text of the Islamabad memorandum of understanding was finalised.”

The deputy minister said talks on a final deal will happen over a 60-day period where Iran has "several issues to address" with a top priority being the lifting of all sanctions against it.

Measuring 'the deal'published at 01:56 BST

01:56 BST

Frank Gardner
Security correspondent

Anything that frees up the Strait of Hormuz is bound to be welcomed, not just by the global shipping industry and the wider world economy but by Iran too.

The Islamic Republic has been trying hard not to give Donald Trump the satisfaction of knowing how much his naval blockade of its Gulf ports is hurting, but the damage to Iran’s economy has been huge.

Yet the real measure of any "peace deal" is what has or has not been achieved after this war began on 28 February.

Because up until that date, Gulf oil, gas, fertiliser, helium and everything else was flowing unobstructed through the Strait. Any deal that restores that flow is simply undoing the damage caused by this war.

Beyond that, the real long-term test will be to see if, as the US President claims, the danger of Iran developing a nuclear weapon has really been reduced.

Or, as some fear, whether the newly emboldened hardliners in the Islamic Revolutionary Guards Corps (IRGC) will now secretly try to race for a bomb as their best defence against being attacked again.

As we reported earlier, Iranian state media says that one of the points included in the memorandum of understanding is the lifting of the US naval blockade within 30 days.

The US military has been blockading Iran's ports after Tehran effectively closed the busy Strait of Hormuz through which about 20% of the world's oil and gas supplies are usually transported.

Centcom says it had disabled nine vessels and redirected 135 more since since the blockade began on 13 April.

US Senator Lindsey Graham says that while he is "pleased" that a memorandum of understanding between the US and Iran has been agreed, he is "somewhat concerned" that "Iran’s view of the agreement seems different than what the American negotiating team is claiming".

In his post to X, the Republican senator said he would be watching the ensuing negotiations "closely", and looked forward to reviewing "the final product" in Congress.

Graham wrote: "Congratulations to all in getting us to this point. Time will tell."

Image source, EPA

The US president gave an interview to the New York Times on Sunday afternoon, in which he says the agreement with Iran ensures the Strait of Hormuz is "permanently toll free".

In what the paper says was a 28-minute phone call, Donald Trump also said that if Iran fails to reach a final nuclear accord with the US he would restart military attacks, or make the US "the guardian of the Middle East" in return for a fifth of the region's revenue.

He remained steadfast in his previous assertions that the decision to attack Iran in February, and his subsequent naval blockade of its ports, has "remade the Middle East in America’s favor".

It is not clear whether the president had spoken to the outlet further following the announcement of the deal between the US and Iran.

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