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FED:'We've been wanting a deal': Australia backs Iran peace

Australia has welcomed the US president's announcement of a deal to end the war in Iran and reopen a critical trading waterway after months of fighting and numerous false starts in negotiations.

Donald Trump and the Pakistani prime minister, whose country has been mediating talks, announced the US and Iran had struck a peace agreement which also covers Lebanon, with an official signing ceremony to take place in Switzerland on June 19.

The agreement to reopen the Strait of Hormuz and resume oil trade was a positive step forward, Prime Minister Anthony Albanese and Foreign Minister Penny Wong said in a joint statement.

"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," they said.

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