President Donald Trump is heading to Europe after dropping what might be the most consequential foreign policy announcement of his term: a framework agreement with Iran that would de-escalate hostilities and reopen the Strait of Hormuz.
The deal text was agreed upon on June 12, 2026, with an official signing expected by June 19 at a location potentially in Switzerland or elsewhere in Europe. Iranian officials confirmed a memorandum of understanding that includes lifting the US naval blockade of the strait, one of the world’s most critical oil transit chokepoints. Bitcoin responded by pushing above $65,000 as risk appetite returned across global markets.
What’s actually in the deal
The framework agreement is the product of weeks of intense negotiations involving Pakistan, Qatar, and Oman as key regional intermediaries. The core provisions center on reopening the Strait of Hormuz, which had been under US naval blockade, a measure that had choked global oil supply routes and sent energy markets into sustained anxiety.
Details around sanctions relief and nuclear considerations are expected to be finalized after the signing ceremony.
