The United States and Iran have reached agreement on the text of a memorandum of understanding aimed at de-escalating their conflict, a development that immediately sent oil prices dropping by more than 4%. Pakistani Prime Minister Shehbaz Sharif announced the deal around June 12-13, 2026, calling it a “final, agreed upon text.”
Iranian Foreign Minister Abbas Araghchi labeled reports of a completed deal as speculative, noting that no binding agreement has actually been established.
What the framework actually includes
The proposed memorandum covers three main pillars. First, an immediate 60-day ceasefire between the two nations. Second, the reopening of the Strait of Hormuz to commercial shipping, with suggestions of toll-free access for certain trade routes. Third, a framework for discussing Iran’s nuclear program alongside conditional sanctions relief.
Roughly one-fifth of the world’s oil supply passes through the Strait of Hormuz, and its closure during recent hostilities created a supply bottleneck that rippled through energy markets worldwide.
