The agreement between the United States and Iran should allow for the "immediate reopening" of the Strait of Hormuz, EU Commission President Ursula von der Leyen said on Monday.
"The priority now is its swift and full implementation by all parties," von der Leyen said about the announced deal.
"Freedom of navigation must be restored toll-free. This is essential for regional stability and the global economy. It opens the door to broader negotiations on peace and security in the Middle East," she added.
Von der Leyen also said that peace in the Middle East was impossible "while Lebanon is in flames", according to Reuters.
"Once again Europe calls on all parties to respect Lebanon's sovereignty and territorial integrity and implement a genuine ceasefire," she said.
EU foreign policy chief Kaja Kallas said the deal between the US and Iran marks a "potential breakthrough" in the war and the EU will now weigh how it can be involved in the next phase.
"From economic leverage to nuclear expertise and longstanding relationships with Gulf partners, the EU stands ready to contribute to a sustainable resolution," Kallas said in a post on X, before a meeting of foreign affairs ministers from the 27 EU member states in Brussels.
European Union chief Antonio Costa welcomed the deal, adding that the bloc was ready to contribute to a strategy for "lasting peace".
"I look forward to an end to this costly war and to the full restoration of freedom of navigation in the Strait of Hormuz," Costa, the European Council President, wrote on X.
US and Iranian officials said they had reached an agreement to end their war and reopen the Strait of Hormuz, a preliminary pact that sent oil prices falling but leaves the fate of Tehran's nuclear program to further negotiations.
While still a framework, the deal marked the biggest breakthrough towards resolving the conflict that has killed thousands and upended energy markets since it began with joint US-Israeli strikes on Iran in February.
"The Deal with the Islamic Republic of Iran is now complete," US President Donald Trump wrote on his Truth Social platform at around 5:30 p.m. in Washington (2130 GMT) on Sunday.
His post came shortly after Pakistani Prime Minister Shehbaz Sharif, whose country has served as a mediator, announced a deal had been struck early on Monday local time.
The memorandum of understanding is scheduled to be officially signed on Friday in Switzerland.
The precise terms were not immediately known. Sharif said in a post on X that the pact called for "the immediate and permanent termination of military operations on all fronts, including in Lebanon."
Lebanon has been a sticking point in negotiations, with Israel and Hezbollah ignoring calls from Trump and others to stop their attacks on each other in recent weeks.
