The Strait of Hormuz handles about a fifth of the world’s daily oil consumption. When Iran declared it closed earlier this year, global energy markets went into full panic mode. Now, President Trump says he’s got a deal to reopen it.
On June 14, Trump announced an agreement with Iran to cease hostilities and restore toll-free commercial shipping through the strait, ending a US naval blockade of Iranian ports that had been grinding on for months. Oil benchmarks responded immediately, with Brent crude falling roughly 3-5% on the news. Bitcoin, meanwhile, climbed toward two-week highs as geopolitical risk drained out of the market.
What the deal actually says
Trump took to Truth Social with the announcement: “The Deal with the Islamic Republic of Iran is now complete… Ships of the World, start your engines. Let the oil flow!”
The core terms are straightforward. The agreement calls for peace between the two nations and the reopening of the Strait of Hormuz with no tolls imposed on commercial vessels passing through. Earlier negotiations had reportedly included discussions around a 60-day ceasefire extension tied to mine clearance operations in the waterway.
