After months of military conflict that rattled energy markets and sent shockwaves through global finance, the United States and Iran have reached a preliminary framework agreement to de-escalate hostilities. The deal, mediated by Pakistan, includes reopening the Strait of Hormuz and lifting a US naval blockade of Iran.
Bitcoin responded by climbing to two-week highs.
What the deal actually says
The memorandum of understanding reached on June 14-15 outlines a ceasefire across multiple fronts, including Lebanon. It calls for reopening the Strait of Hormuz, a chokepoint through which roughly a fifth of the world’s oil supply flows. The formal signing is scheduled for June 19 in Switzerland.
This isn’t a nuclear deal. Nuclear discussions have been explicitly deferred for an additional 60 days. The MoU is a de-escalation framework, a necessary precursor to the harder conversations about uranium enrichment that will follow.
