US and Iranian officials have agreed to a preliminary framework to end their conflict and reopen the Strait of Hormuz, the narrow waterway through which roughly 20% of the world’s oil supply has historically transited. The deal, announced on June 14, represents the first major de-escalation since US and Israeli forces launched strikes against Iran on February 28.
The agreement’s core terms: toll-free reopening of the Strait of Hormuz to international shipping, an end to the US naval blockade on Iranian ports, and a 60-day ceasefire designed to create space for further negotiations. A formal memorandum of understanding is scheduled for signing on June 19 in Switzerland.
Oil prices dropped on the news. For crypto markets, the implications are more nuanced.
What the deal actually covers
President Donald Trump confirmed the agreement through a post on Truth Social, emphasizing that the Strait of Hormuz would be toll-free and that the naval blockade would be removed immediately.
