The United States and Iran have reached a preliminary agreement early on June 15, 2026 aiming to extend their shaky ceasefire and reopen the Strait of Hormuz. This deal, which could potentially allow desperately needed oil and natural gas to reach the global market, faces significant challenges, including Israel’s insistence on holding onto land seized in Lebanon.

The details of the agreement, which is set to be signed on Friday in Switzerland were not immediately released. The memorandum of understanding over the war already faces hurdles, with Israel’s continued hostilities with the Iranian-backed militia Hezbollah in Lebanon nearly derailing the negotiations.

Israel’s Stance on Withdrawal

In the first official Israeli comments after the announcement of the deal, Defense Minister Israel Katz stated that Israel won’t withdraw from land seized in Lebanon as the interim deal is pending. Katz said Israel plans to stay “indefinitely” in lands it holds in Lebanon, as well as Syria and the Gaza Strip. Iran has tied the interim deal over the war to halting Israel’s attacks on Hezbollah in Lebanon.

Over the past 2 1/2 years Israel has taken control of areas in Gaza, Lebanon, and Syria amounting to 1,000 square kilometers (386 square miles) of territory — an area that is slightly smaller than New York City. Katz also threatened that if Iran attacks Israel over Israeli strikes in Lebanon, Israel will strike Iran with “great force.”

World leaders from China to Europe welcomed the announcement. The closure of the Strait of Hormuz has roiled international markets and sent prices of fuel and other essential goods, including food, spiraling. Chinese Foreign Ministry spokesperson Lin Jian said that China hopes the U.S. and Iran will sign the initial memorandum of understanding as scheduled.

France’s Foreign Minister Jean-Noel Barrot welcomed the agreement “that should bring an end to hostilities on all fronts, including in Lebanon.” He said that “all parties to the conflict must respect this agreement.” Barrot also noted that the war in Iran has driven prices of fuel and fertilizer painfully high, and with the ceasefire, dozens of nations like France and the United Kingdom could send ships to protect freedom of navigation in the Strait of Hormuz.

The European Union’s top diplomat, Kaja Kallas pledged support for further negotiations over outstanding issues like Iran’s nuclear program. “Fingers crossed that they will be also initialized on Friday, because everybody needs the Strait of Hormuz to be open and actually this war to stop,” Kallas said ahead of a gathering of foreign ministers in Luxembourg on Monday.

U.K. Prime Minister Keir Starmer also welcomed the breakthrough and said it was vital that all parties in the region seize the opportunity to restore freedom of navigation in the Strait of Hormuz. “We will now work closely with our partners to support this agreement and to ensure that it turns into a durable, lasting peace,” he said.

Pakistan’s Role as Mediator

Pakistan a key mediator, announced the deal, with Prime Minister Shehbaz Sharif saying “both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon.” He added that mediators this week will facilitate meetings to “lay the foundation for the technical talks.” Broader negotiations on outstanding issues like Iran’s nuclear program would continue over the next 60 days two senior Pakistani officials said earlier Sunday, speaking on condition of anonymity because they were not authorized to discuss the matter publicly.

If the sides fail to reach a resolution within that time, the timeline could be extended. Iranian state television cited the secretariat of the Supreme National Security Council as saying the war on all fronts “will end immediately and permanently beginning tonight” — and that the U.S. blockade “will be terminated immediately and in full.” Qatari mediators later left Tehran following 17 hours of negotiations said an official briefed on the developments who spoke on condition of anonymity due to the sensitivity of the talks.

It was not clear who from Iran would sign the deal on Friday. U.S. Vice President JD Vance told Fox News the White House was still figuring out who would attend: “I certainly plan to be there, but it’s possible the president himself could be there.” However, concern among Republicans in the U.S. already could be seen, including U.S. Sen. Lindsey Graham of South Carolina, who described Vance as “the architect of the deal.”

“I am somewhat concerned that Iran’s view of the agreement seems different than what the American negotiating team is claiming,” Graham wrote online.