President Trump announced on June 13 that a memorandum of understanding between the US and Iran is set to be signed on June 14, instantly reopening the Strait of Hormuz to all shipping without tolls. Bitcoin responded by climbing above $63,000.
The strait handles roughly 20% of global oil trade.
What the deal actually involves
The agreement reportedly includes several interlocking pieces. A potential 60-day extension of the fragile ceasefire between the US-Israel coalition and Iran sits at the center. Measures aimed at restricting Iran’s nuclear program are also part of the package, alongside a phased removal of the US naval blockade currently choking the strait.
Negotiations involved multiple stakeholders beyond Washington and Tehran. Gulf states and Pakistani mediators played roles in brokering the terms.
