Tehran, Iran - The US and Iran said they reached a deal to end the Middle East war, on all fronts including Lebanon, and reopen the Strait of Hormuz, but offered few details on the agreement's terms.

Washington and Islamabad said the agreement was to be signed on Friday in Switzerland, signaling what would be a major breakthrough to end months of war that have taken thousands of lives and shattered the global economy.

Few of the details were made public, but President Donald Trump said the Strait of Hormuz, a key conduit for global oil supplies, would reopen after the deal is signed.

"The Deal with the Islamic Republic of Iran is now complete," Trump wrote in a Truth Social post on Sunday as he marked his 80th birthday. "Ships of the World, start your engines. Let the oil flow!"

Soon after, Iran's Deputy Foreign Minister Kazem Gharibabadi said in televised comments that the deal put an "immediate end" to the countries' war and that they would hold talks within two months to seek a "final agreement."

Mere hours earlier, Tehran had vowed to retaliate against a strike by Israel against Iranian ally Hezbollah in the suburbs of Beirut.

Later in the day, however, Pakistani Prime Minister Shehbaz Sharif announced that a deal had been reached: "Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon."

"With the agreement now in place, 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."

The content of the agreement, which follows weeks of fraught negotiations and periodic threats from Trump of fresh hostilities unless Iran reached a deal, remain unclear.

Iran's Mehr news agency reported that the US would release $12 billion in frozen assets to Iran before the start of negotiations.

It quoted a 14-point "memorandum of understanding" (MoU) between the two nations, which it said stipulated "the release of 24 billion dollars in frozen Iranian assets during the 60-day negotiation period" that begins after the MoU is signed.

The Trump administration didn't immediately comment on the details of the agreement, which may prove contentious as the US presses its effort to end Tehran's nuclear ambitions and deal with its stockpile of highly enriched uranium.

In an interview with the New York Times on Sunday, Trump said Washington was still negotiating whether Iran would suspend its enrichment for 20 years.

The US leader hinted that he might settle for a 15-year suspension, but said he did not want to negotiate via the press.

The announcement of the deal was greeted with international relief and hope for an enduring end to the conflict.

UN Secretary-General Antonio Guterres said it was a "critical step" toward resolving the war in the Middle East.

The UK, France, Germany, and Italy said they were prepared to lift sanctions imposed on Iran and will work "with the US, Iran, and regional partners to seize this moment, maintain momentum and achieve a long-term diplomatic settlement."

The announcement also brought relief at market opening on Monday. Oil prices plunged more than four percent in Tokyo, and Japan's Nikkei stock index jumped three percent.

This is largely because the blockade of the Strait of Hormuz has triggered a worldwide economic crisis, inflating oil prices and fueling the cost of living crisis which continues to run rampant in the US and elsewhere.

"What we're going to be able to do is drive down the cost of energy, not just now but for the long term, and create a real engine of prosperity in the Middle East," Vice President JD Vance told Fox News.

He said that he planned to attend the signing of the peace deal, which is slated to take place in Geneva, and confirmed it was possible that Trump could also go.