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

The inclusion of Lebanon is notable since Israeli officials have been rejecting the idea of ending the war, and Israel just bombed Beirut's southern suburbs on Sunday, which was seen as an effort to sabotage a US-Iran deal.

Sharif suggested not all of the details have been worked out, saying that the "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."

Kazem Gharibabadi, Iran's deputy foreign minister for legal and international affairs, confirmed that a Memorandum of Understanding has been reached and that it will be formally signed on Friday. After that, the US and Iran will begin 60 days of negotiations on other issues, including Iran's nuclear program, but the lifting of the US blockade and a ceasefire in Lebanon will happen immediately.

"Starting tonight, the US naval blockade against Iran will be terminated," Gharibabadi said, adding the agreement would bring the "immediate and permanent end of the war and military operations on various fronts, including Lebanon."

Gharibabadi said Iran's threat to strike Israel in response to Israel's latest attack on Beirut played a role in reaching the agreement. "Our armed forces were ready to deliver a decisive response. Trump also adopted positions and criticized the Zionist regime. Hezbollah gave firm and decisive answers to the terrorist act of the Zionist regime. Military power and the threats we made helped finalize the text and advance several issues we were working on," he said.

President Trump posted on Truth Social about the deal and announced he was lifting the blockade of Iranian ports.

"The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! 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. Ships of the World, start your engines. Let the oil flow!" the president wrote.

Trump later told The New York Times that if he failed to reach a final nuclear agreement with Iran after the signing of the MOU, he would restart the bombing campaign against Iran, or declare the US the "guardian of the Middle East" and take a 20% cut of the region's revenues. He also called Israeli Prime Minister Benjamin Netanyahu a "really difficult guy" and said "he should be very thankful" to the US for the Iran war.