Investing.com -- The United States and Iran agreed to a preliminary peace deal on Monday according to statements by leaders and other officials of the two countries, potentially ending the military conflict of nearly four months that disrupted global commerce and sent shockwaves through the markets.

The two nations said they have finalized a memorandum of understanding and agreed to halt military operations, but are yet to formally sign any actual documents. The MoU has not been made public with U.S. Vice President JD Vance telling CNBC on Monday that he hopes "to release text this week."

Here are the key details of the deal known so far, as disclosed by officials of both Iran and the United States:

Hormuz to reopen, U.S. blockade to end

Both U.S. President Trump and Iran’s Deputy Foreign Minister Kazem Gharibabadi said over the weekend that the Strait of Hormuz, the critical waterway for global oil shipments, will reopen without tolls upon the signing of the deal on Friday.

Trump also announced that the U.S. naval blockade of Iran, which saw the U.S. Navy turn around any ship headed to or from Iran, would end.

Trump wrote on Truth Social: "I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!"

Iranian state news agency Mehr reported the strait reopening would be subject to Iranian arrangements.

U.S. VP Vance told CNBC on Monday that he expects the Strait of Hormuz "to be open toll-free long term."

Iran's nuclear program

The agreement establishes a 60-day ceasefire to create a framework for future negotiations on Iran's nuclear program, sanctions, and regional security. Gharibabadi said the nuclear negotiations could only begin if the U.S. releases billions of dollars in frozen Iranian funds. The U.S. dismissed this claim.

Trump told the New York Times that the U.S. could attack Iran again if negotiations fail to produce a resolution on its nuclear program. He reiterated Sunday that "Iran will never have a nuclear weapon."

Israel and Lebanon

Israel, which has been a combatant since February 28, is not part of the agreement. Israeli Defense Minister Israel Katz said Monday that the Israel Defense Force would remain in security zones in Lebanon, Gaza, and Syria. He added that Israel would retaliate if Iran attacks the country in response to events in Lebanon.

U.S. VP Vance said that he thinks "there are elements in Israel that like the deal," adding that "Israel will have a seat at the table in the new Middle East."

Formal signing

Iran's Gharibabadi said the text will be signed on Friday in Geneva, Switzerland. Trump echoed the date in his Sunday post on Truth Social.

No official U.S. delegation has been confirmed for the Geneva signing. Vice President JD Vance was reportedly under consideration for the ceremony. White House envoy Steve Witkoff, who led much of the U.S. negotiating track with Iran, is a likely participant.

U.S. VP Vance told CNBC that he expects "to have a full spectrum of Iranian representatives at Friday signing" including "Speaker of the House and Foreign Minister."

"We will see where Tehran is willing to make concessions," Vance added, noting that "lots of details" are yet to be sorted out.