British Prime Minister Keir Starmer (left) works with Japanese Prime Minister Sanae Takaichi at 10 Downing Street in London, England, Sunday, June 14, 2026.
Andy Lane | Bloomberg | Getty Images
World leaders have welcomed a deal between the United States and Iran to end wars in the Middle East, with some European countries reportedly suggesting they are willing to lift sanctions on Iran in exchange for measures to curb its nuclear program.
After more than three months of war, the United States and Iran reached an agreement on Sunday that will bring an immediate and permanent end to the conflict, Pakistan Prime Minister Shehbaz Sharif said, with a deal to be signed in Switzerland on Friday and the start of 60 days of additional talks on Iran’s nuclear program.
US President Donald Trump said he would approve the immediate lifting of the US naval blockade. Final terms have not yet been announced, but Iranian state media reported last Friday that the 14-page draft memorandum included a commitment to lift U.S. oil sanctions and for Iran to reopen the Strait of Hormuz within 30 days.
In a joint statement following the deal’s announcement, Britain, France, Germany and Italy hailed it as “a great opportunity to restore stability in the region and stabilize the global economy”.
In a statement, the group, known as E4, also called for the agreement to be “swiftly and comprehensively implemented” and that “the urgent reopening of the Strait of Hormuz with unconditional and unrestricted freedom of navigation is essential.”
According to Reuters, European countries stressed that “Iran must never possess nuclear weapons. We stand ready to cooperate with the United States, Iran and the IAEA (International Atomic Energy Agency) to this end.”
British Prime Minister Keir Starmer also hailed the deal as a “hugely important step towards ending the war”, but stressed that the Strait of Hormuz, a key energy chokepoint that has been effectively closed during the war, must remain “fully and permanently” open.
Japanese Prime Minister Sanae Takaichi said he welcomed the agreement as “a big step towards resolving the situation,” according to a Google translation of her statement in X on Monday.
Takaichi said, “I strongly hope that this memorandum will be steadily implemented, that free and safe navigation in the Strait of Hormuz will actually be ensured, and that a final agreement on issues such as the Iranian nuclear issue will be reached as soon as possible.”
President Trump is scheduled to meet with the leaders of seven major countries — Canada, France, Germany, Italy, Japan and the United Kingdom — and the European Union at this year’s summit, which begins Monday in France.
Qatar’s Ministry of Foreign Affairs also welcomed the agreement in a statement, calling it “an important step towards strengthening sustainable peace and promoting economic growth regionally and internationally.”
The deal comes after months of stop-start negotiations and regional fighting since late February, roiling global energy markets and fueling fears of a global recession.
Oil fell after Sunday’s announcement of the deal, with Brent crude falling about 4% to $83 a barrel and WTI falling 4.8% to $80.8.
Christian Noyer, honorary president of the Banque de France, told CNBC’s “Squawk Box Asia” on Monday that a peace deal could “substantially” ease inflationary pressures, restore consumer confidence and give the world’s central banks more room to maneuver on monetary policy. “We very much wanted an event like this to take place as soon as possible.”
