LIVE: US, Iran confirm reaching peace deal; Hormuz to open on June 19

Egypt hails deal as major step toward regional stability

Egypt's Foreign Ministry welcomed the agreement, describing it as a "highly significant development" that could help restore "security and stability" across the region and beyond.

In an official statement, the ministry said the breakthrough was the result of sustained diplomatic engagement by regional and international stakeholders over several months. It noted that the agreement opens "a new chapter" in efforts to ease tensions and promote dialogue.

Cairo expressed optimism that the development could create momentum for broader diplomatic progress. The ministry said it hopes the agreement will prove to be "a major turning point" in fostering "a supportive environment for peace" and advancing solutions to other longstanding challenges facing the Middle East.

The statement underscored Egypt's support for initiatives aimed at reducing conflict and encouraging stability, while highlighting the importance of continued cooperation among regional and global partners to maintain the positive momentum generated by the deal.

Israel won't leave Lebanon territory, says Defence Mnister

Israeli Defence Minister Israel Katz has signalled that Israel intends to maintain control over areas captured during its military operations in Lebanon, indicating there are no plans to relinquish the territory. He also warned that any action by Iran linked to developments in Lebanon would prompt a response from Israel.

According to Katz, "Israel will not withdraw from territory it seized in Lebanon" and if "Iran attacks it over events in Lebanon Israel will retaliate".

Lebanon became increasingly involved in the regional conflict after hostilities erupted between Israel and Hezbollah on March 2. Efforts to reduce tensions have so far failed to produce lasting results. A ceasefire reached in April was not implemented on the ground, allowing clashes to continue.

Although Lebanese and Israeli representatives recently held talks in Washington that resulted in a new conditional truce arrangement announced last week, fighting has persisted, raising doubts about the prospects for a sustained halt to hostilities along the border.

Minister says Trump-brokered deal does not bind Israel

Israel's National Security Minister Itamar Ben-Gvir strongly rejected suggestions that any agreement brokered by US President Donald Trump would dictate Israel's actions. In a post on X, he stated, "Trump's agreement does not bind us. Israel is not subject to the United States, and we are an independent and sovereign nation..."

Ben-Gvir argued that previous concessions made under international pressure had harmed Israel's security interests. Referring to past agreements and military arrangements, he said, "Every time we succumbed to international pressure at the expense of Israel's security, we paid a blood price with interest."

While expressing appreciation for Washington's support, he emphasised, "We love the USA and are grateful to President Trump. And yet, the State of Israel is not a banana republic."

Calling for decisive leadership, Ben-Gvir added, "In historical moments, a historical decision must be made..." He also warned that "Every launch of a drone, UAV, or missile toward Israel from Lebanon will lead to an Israeli strike in Dahiya..."

EU chief calls for Hormuz reopening after agreement

European Commission President Ursula von der Leyen welcomed the newly announced agreement, while stressing that "the priority now is its swift and full implementation by all parties".

She called for an "immediate reopening of the Strait of Hormuz", emphasising that freedom of navigation remains "essential for regional stability and the global economy". According to von der Leyen, restoring safe passage through the critical maritime route is vital for both international trade and regional security, reported the BBC. 

The EU chief also said the framework agreement could create momentum for wider diplomatic efforts aimed at strengthening peace and security across the Middle East.

Addressing the situation in Lebanon, she stated: "And of course, there can be no peace in the Middle East while Lebanon is in flames. Once again Europe calls on all parties to respect Lebanon's sovereignty and territorial integrity and implement a genuine ceasefire."

Von der Leyen added that the issue is expected to feature prominently in discussions among European leaders attending this week's G7 summit in France.

Asian markets rally as Nikkei, Kospi post strong gains

Asian stock markets rallied strongly, with Japan's Nikkei 225 advancing about 5% and South Korea's Kospi gaining nearly 4.8%.

Regional equities have experienced significant volatility in recent months, as investors reacted swiftly to developments surrounding the conflict involving the United States, Israel and Iran, reported the BBC. Market sentiment has frequently shifted between optimism and caution, triggering sharp swings in share prices across Asia.

The disruption of traffic through the Strait of Hormuz has placed additional pressure on Asian economies, many of which depend heavily on energy imports from the Middle East. Reduced access to a key global oil transit route has raised concerns over fuel supplies, increased costs and broader economic impacts throughout the region.

EU sees framework deal as step toward ending conflict

European Council President António Costa welcomed the development, saying he looks "forward to an end to this costly war". In a post on X, Costa stressed that "weapons must now fall silent and outstanding differences must be resolved by peaceful means", underscoring the need for diplomacy over continued conflict.

Meanwhile, European Union foreign policy chief Kaja Kallas described the framework agreement as "a potential breakthrough". She said the deal could "give much needed space for deeper negotiations", expressing hope that it would create an opportunity for sustained diplomatic engagement and a broader resolution to the crisis.

Oil supply recovery may take months despite Hormuz reopening

Despite Sunday's agreement to end the Iran conflict and reopen the Strait of Hormuz, energy experts caution that relief from elevated oil prices and supply disruptions will not be immediate. Restoring normal oil flows could take several months as companies work to restart operations and rebuild confidence in the region's security.

For over three months, crude oil tankers have remained stranded in the Persian Gulf, unable to safely navigate the key shipping route that typically handles about 20% of global oil and fuel supplies. According to Daniel Evans of S&P Global Energy, “It's going to take time for people to feel comfortable and for insurance to be in place ... particularly to get people on the ground to restart some of these assets.”

Although oil prices fell following the announcement, they remain significantly above pre-war levels. Experts say producers, transporters and investors will require proof of lasting stability before resuming full operations. As Daniel Sternoff noted, “We don't know what open means or what the speed of evacuation of trapped material is going to be.”

UN chief welcomes announcement of US-Iran peace deal

UN chief Antonio Guterres has welcomed the announcement of a peace deal between the US and Iran that provides for an immediate and permanent ceasefire and the reopening of the Strait of Hormuz.

Secretary General Guterres on Sunday described it as a critical step towards the peaceful settlement of the conflict.

Guterres welcomed the announcement that the “United States and Iran have agreed on a peace deal that provides for an immediate and permanent ceasefire, the reopening of the Strait of Hormuz, as well as a framework for further negotiations," a statement issued by his spokesperson, Stéphane Dujarric, said Sunday.

"This represents a critical step towards the peaceful settlement of the conflict,” Dujarric said.

Rupee rises 58 paise to 94.60 against US dollar in early trade

The rupee rose 58 paise against the greenback to 94.60 in early trade on Monday (June 15) as global crude oil prices dropped sharply after US President Donald Trump announced that the US and Iran finalised a deal to end the war.

A strong start to the day at the domestic equity markets and a weaker US dollar further drove the local unit, forex traders said.

At the interbank foreign exchange, the rupee opened at 94.70 against the US dollar before rising further to 94.60, up 58 paise from its previous close.

The rupee surged 67 paise to close at 95.18 against the greenback on Friday.

US-Iran peace deal may help boost India's exports, stabilise rupee

The announcement that the US and Iran have finalised a deal to end their 107-day conflict and reopen the Strait of Hormuz is expected to boost India's exports to West Asia, which was severely impacted by the hostilities, spur manufacturing activity, and help stabilise the rupee, according to exporters and experts.

They said the announcement, if implemented successfully, would reduce pressure on India's import bill, ease inflationary concerns, and create a more conducive environment for trade.

The peace agreement would be signed on June 19 in Switzerland.

The US and Iran have reached a peace deal to end a four-month war that disrupted global energy supplies, pushed oil prices above USD 100 per barrel, and brought the Middle East to the brink of a wider regional conflict.

For India, which relies heavily on West Asia for crude oil, LPG, and LNG supplies, the deal promises relief from high energy prices, pressure on the rupee, and inflation risks that intensified during the conflict, economic think tank GTRI said.