Australian Prime Minister Anthony Albanese welcomed the development, saying in a statement: "The Australian Government welcomes the agreement by the United States and Iran."

He added: "Australia has long called for de-escalation and an end to the conflict, including in Lebanon. As we have said, the longer this war goes on, the greater the impact will be."

The Australian leader stressed the need for continued diplomacy, saying: "Continued restraint and constructive engagement will be essential to prevent further escalation and secure a lasting agreement."

Albanese also welcomed provisions related to maritime trade, saying: "We are pleased the agreement between the US and Iran includes steps towards reopening the Strait of Hormuz and the restoration of freedom of navigation. While full recovery will take time, restoring this vital trade corridor is essential to easing pressure on energy prices and economies, including in our region."

British Prime Minister Keir Starmer described the agreement as an important step toward ending the conflict and ensuring regional stability.

"I congratulate President Trump and the mediators from Pakistan, Qatar and elsewhere who have contributed to this breakthrough. We have long urged de-escalation and this is the progress we had hoped to see," Starmer said.

He added: "Attention must now turn to fully implementing the memorandum of understanding to ensure the Strait reopens and remains fully and permanently open, and that the detailed elements of the nuclear agreement are finalised."

Starmer further said that toll-free freedom of navigation through the Strait of Hormuz must now be restored.

French President Emmanuel Macron also welcomed the agreement, writing on X: "This agreement must enable the urgent and unconditional reopening of the Strait of Hormuz, which the international mission established with the United Kingdom is ready to support. The resources are in place and ready to be deployed."

He added: "The resumption of maritime traffic, without restriction or toll, is an indispensable condition for regional stability and the global economy."

UN Secretary-General António Guterres also praised the development, saying: "I warmly congratulate the US and Iran for having reached 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. This represents a critical step towards the peaceful settlement of the conflict."

He further said: "My deep appreciation goes to Pakistan, Qatar, Egypt, Saudi Arabia, Türkiye and other regional countries for the constructive role they played in supporting the negotiations that led to the peace deal."

Earlier on Monday, US President Donald Trump announced that Washington and Tehran had reached an agreement aimed at ending hostilities in the region.

In a post on Truth Social, Trump declared: "The Deal with the Islamic Republic of Iran is now complete."

"Congratulations to all! I hereby fully authorize the toll-free opening of the Strait of Hormuz and, simultaneously, authorize the immediate removal of the United States naval blockade. Ships of the world, start your engines. Let the oil flow!" Trump wrote.

Describing it as a "great deal," Trump said the agreement would bring peace and security to the region.

"Many presidents have tried to make peace with Iran, and all have failed before me. The leaders of the region have, for the first time, found a President who can help them achieve real peace," he said.

Iran's Deputy Foreign Minister Kazem Gharibabadi also confirmed the agreement. Quoting him, the Iranian Consulate in Hyderabad posted on X: "The immediate and permanent end of the war and all military operations on various fronts, including Lebanon, will be announced starting tonight."

However, Gharibabadi emphasized that the understanding should not be viewed as a formal peace treaty.

"This is not a peace deal. This is a memorandum of understanding (MoU) aimed at stopping U.S.-Israeli war crimes against other nations—crimes that will never be erased from the collective memory of Iranians," he said.

The Iranian official further added: "We defeated the U.S. on the military battlefield, and in this memorandum they pledged to end the war. Iran's armed forces will always have their hand on the trigger to confront the conspiracies of the enemies."

The exact details and terms of the agreement remain unclear, and several claims made by the parties involved have yet to be independently verified.