The United States and Iran are expected to sign a peace agreement electronically this Saturday to end hostilities and reopen the Strait of Hormuz [1], [2].

The agreement represents a major diplomatic breakthrough that could stabilize global energy markets by restoring shipping access to one of the world's most critical maritime chokepoints [4], [5].

Pakistani Prime Minister Shehbaz Sharif, acting as the mediator, said the two nations are closer to a peace deal than ever before [2]. Sharif said that the deal could be finalized within 24 hours [1], [2]. He said that Pakistan is preparing for the electronic signing of the agreement, which will be followed by technical level talks next week [2].

President Donald Trump indicated the imminence of the agreement on Thursday. Trump said he was canceling strikes in Iran for that evening because a peace deal was imminent [6].

The final terms of the agreement focus on permanently ending the conflict between the U.S. and Iran [3], [5]. A primary component of the deal is the reopening of the Strait of Hormuz to allow international shipping to resume [3], [5].

While some reports describe the agreement as an end to a broader U.S.-Israeli war with Iran, other sources characterize it as the conclusion of the direct war between the U.S. and Iran [3], [2]. The electronic nature of the signing ceremony means no physical venue has been disclosed for the event [2].

“"A peace deal between the U.S. and Iran could be finalized 'in the next 24 hours.'"”

This agreement signals a pivot in U.S. foreign policy toward Iran and underscores Pakistan's emerging role as a critical diplomatic bridge between Western powers and Tehran. By reopening the Strait of Hormuz, the deal addresses a primary vulnerability in global oil supply chains, potentially lowering volatility in energy prices and reducing the risk of direct military escalation in the Persian Gulf.