Foreign Affairs Minister Winston Peters says announcement of US-Iran deal 'a step towards reducing tensions and promoting stability in a region critical to global economic security'

The New Zealand Government is welcoming the announcement of a deal between the United States and Iran, aimed at ending the conflict in the Middle East. 

News of the deal has seen share markets rise and oil prices drop.

But at a post-Cabinet press conference on Monday afternoon, Finance Minister Nicola Willis said while this was an encouraging development, the situation in the Middle East was fragile. 

"This is not the first time we've had news of a breakthrough. It is too soon to call a sustained fall in fuel prices - that is what we want to see - but we accept that there could be events in the coming days and weeks that change the projections for oil prices, so we will hope for the best but continue to prepare for less favourable outcomes," Willis said.

She said with the global price of oil coming down, the Government expected to see falling prices at the pump. 

Willis said the Government had commissioned the Commerce Commission to monitor this and she received a daily report from officials at the Ministry of Business, Innovation and Employment (MBIE) about what is happening at the pump on pricing.

Willis said it was something they were watching very carefully. 

Asked what recourse was there if prices didn't fall in line with their expectations, Prime Minister Christopher Luxon said: "To any oil executive listening to this press conference, we're pretty clear we expect them to do the right thing."

"We're very comfortable with what the oil companies have been doing. We haven't seen any evidence of any gouging ... We've had a good relationship with the oil importers. We expect that to continue. We understand when prices go up, they need to raise them but also when prices come down, they need to lower them too."

'Pivotal, constructive deal'

On social media platform X, Pakistan's Prime Minister Shehbaz Sharif wrote that a peace deal had been reached between the United States and Iran.

“Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon,” he wrote.

It's expected that an official signing ceremony of a Memorandum of Understanding will take place on June 19 in Switzerland.

“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," he wrote.

Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED. Both sides have declared the immediate and permanent termination of military operations on all fronts, including in…

— Shehbaz Sharif (@CMShehbaz) June 14, 2026

Sharif didn't mention Israel.

Foreign Affairs Minister Winston Peters said the "pivotal, constructive deal" was "a step towards reducing tensions and promoting stability in a region that is critical to global economic security."

“The disruption to the Strait of Hormuz has had serious impacts on New Zealand’s economy, as well as on our Pacific partners,” Peters said.

“We welcome steps that will enable the safe reopening of this vital maritime route and restore confidence in key supply chains."

“Dialogue and diplomacy remain the most effective means of resolving longstanding issues, he said.

“This is a good first step and we hope the parties now seize the opportunity to resolve the tensions in the region.”

On X, Luxon said: “New Zealand welcomes the US-Iran agreement announced this morning - a positive step toward reducing tensions and strengthening global stability.”

“The conflict has hit Kiwis’ back pockets and put pressure on household budgets.

“Reopening the Strait of Hormuz will help restore stable trade routes, get fuel flowing, and keep our economy moving.”

According to Al Jazeera, following the signing, Iran’s Deputy Foreign Affairs Minister Kazem Gharibabadi said negotiations for a final deal will be held during a 60-day period.

This would come after confirming the US has held up its end of the deal such as lifting the blockade and ending hostilities, Al Jazeera reported.

Gharibabadi told state media: “Two issues will take effect immediately starting early this morning."

"1. A permanent and immediate end to the war on all fronts, including Lebanon. 2. The lifting and termination of the naval blockade that the United States had imposed against the Islamic Republic of Iran."

Al Jazeera reported that Iran has included all its “important positions” in the draft of the memorandum of understanding, adding that the text will be published after the accord is signed.

United States President Donald Trump further confirmed the deal, writing on his social media platform Truth Social: “Congratulations to all! 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!”