The most important chokepoint in global energy markets is about to reopen for business. Vice President JD Vance confirmed that the United States expects the Strait of Hormuz to remain open and toll-free, and that Iran’s key officials will attend the formal signing of a memorandum of understanding in Switzerland.
The signing ceremony is scheduled for June 19, 2026, marking the culmination of a diplomatic process that has moved at unusual speed given the depth of hostilities between Washington and Tehran earlier this year.
From blockade to breakthrough
The closure came after US and Israeli strikes on Iran on February 28, 2026. Iran responded by blockading the strait, effectively choking off a critical artery of international commerce. Oil markets spiraled. Energy prices surged.
The framework agreement announced on June 14 aims to undo all of that. President Donald Trump took to Truth Social to authorize the toll-free reopening of the strait and the simultaneous removal of the US naval blockade. His message to the shipping industry was characteristically blunt: “start your engines.”
