President Trump announced on Truth Social that a memorandum of understanding for peace between the United States and Iran will be signed on Sunday, June 14. If it holds, the deal would mark the most significant diplomatic breakthrough in the Middle East in decades, and markets are already starting to price it in.
The agreement reportedly centers on two headline items: the immediate reopening of the Strait of Hormuz and Iran’s commitment to halt its pursuit of nuclear weapons. For context, roughly one-fifth of the world’s oil passes through that narrow waterway.
A deal months in the making
This announcement didn’t materialize overnight. A ceasefire between the US, Israel, and Iran has been in place since April 2026, following a period of escalating conflict that spooked markets earlier this year. Pakistan has been involved in mediation efforts, and Gulf States along with Israel are believed to have shaped elements of the negotiations behind the scenes.
Trump described the deal back in May as “largely negotiated,” though he later walked back some of those statements. Iranian media outlets leaked conflicting details about the agreement’s terms, adding a layer of confusion to what was already a complex diplomatic picture.
