The Chairperson of the African Union Commission, Mahmoud Ali Youssouf, has welcomed the peace agreement announced by the United States and Iran, describing it as an important step toward restoring stability in the Middle East.

In a statement issued on Monday, Youssouf commended both countries and the mediation team for reaching the agreement and urged all parties to remain committed to its implementation.

"The Chairperson encourages all parties to remain committed to the full implementation of the agreement and to continue advancing efforts that promote lasting peace, stability, and cooperation in the Middle East and beyond," the African Union said.

Egypt praises development

Egypt also welcomed the agreement, describing it as a significant development that could help restore security and stability at both regional and international levels.

The Egyptian government had worked in recent months, alongside regional and international partners, to help create conditions that would end the conflict and open a new chapter for the region.

In a statement, Cairo expressed hope that the deal would mark a turning point in relations between Washington and Tehran by strengthening mutual trust, laying new foundations for cooperation and creating a conducive environment for peace. Egypt said such progress could support diplomatic efforts to resolve other regional challenges and positively impact security across the Middle East.

Cairo also expressed hope that the end of hostilities would refocus international attention on the humanitarian and security challenges facing Palestinians in Gaza and the West Bank, while helping to accelerate the implementation of the second phase of US President Donald Trump's peace plan.

Meanwhile, financial markets reacted positively to the breakthrough, with the South African rand strengthening in early trade on Monday as the US dollar weakened following confirmation from American and Iranian officials that an initial agreement had been reached to end the conflict.