Vice President JD Vance touted a newly reached agreement with Iran on Sunday, saying the Trump administration had achieved its key objectives and predicting the deal could "fundamentally transform the Middle East" for decades to come.

"I think it's a big moment for the United States of America, thanks of course to the president's leadership and the hard work of the entire team," Vance told "The Big Weekend Show."

Speaking to the show by phone, Vance said the agreement — which is expected to be signed Friday — would reopen the Strait of Hormuz and permanently prevent Iran from pursuing a nuclear weapon.

IRAN'S REGIME SPINS NUCLEAR AND STRAIT OF HORMUZ DEAL WITH TRUMP AS VICTORY OVER U.S., ISRAEL

Vice President JD Vance speaks during a discussion at the Munich Leaders meeting hosted by the Munich Security Conference at the Willard Hotel in Washington, D.C., May 7, 2025. (MANDEL NGAN/AFP via Getty Images)

The vice president said the deal would not only end the conflict but could usher in a new era of stability and economic growth across the region.

"It's going to end the war. It's gonna make the Middle East more investable. It's going to mean a lot of prosperity, lower energy prices for the American people," he said.

"This region of the world has been a basket case for my entire life and longer than that, and what the president has really set us up to do is to certainly eliminate the nuclear threat of Iran... but now possibly to build to a new era of Middle East prosperity and success, where it's not a region of world where the United States has to worry about so much, but where frankly we can generate a lot of prosperity for the American people out of that region," he added.

TRUMP ANNOUNCES PEACE DEAL WITH IRAN, DECLARES STRAIT OF HORMUZ WILL REOPEN: 'LET THE OIL FLOW!'

Vice President JD Vance, walks with Pakistan's Chief of Defense Forces and Chief of Army Staff Field Marshal Asim Munir, Pakistani Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, Charge d'Affaires of the U.S. Embassy in Islamabad Natalie A. Baker, and Pakistan's Interior Minister Mohsin Raza Naqvi, after arriving for talks with Iranian officials in Islamabad, Pakistan, on Saturday, April 11, 2026. (Jacquelyn Martin/Pool via REUTERS)

President Trump announced the major diplomatic breakthrough on Sunday, authorizing the "toll-free" opening of the Strait of Hormuz in a Truth Social post.

Pakistani Prime Minister Shehbaz Sharif, whose country has served as a mediator, was the first to announce the peace deal, saying a signing ceremony is scheduled to take place Friday in Switzerland.

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

According to Sharif, the deal includes the termination of military operations across the region, including in Lebanon, where Iran-backed terrorist proxy Hezbollah has been engaged in conflict with Israel.

Vance thanked the American people for their patience throughout the ordeal, offering a glimmer of hope that energy prices could soon fall in light of the agreement.

Fox News' Bonny Chu and Benjamin Weinthal contributed to this report.