The United States and Iran have agreed to a memorandum of understanding aimed at ending the war in the Middle East, a development that sent equities higher and oil prices lower almost immediately. President Donald Trump announced the MOU on June 15, 2026, with a formal signing scheduled for June 19 in Switzerland.
The deal includes a 60-day ceasefire and the reopening of the Strait of Hormuz, the narrow waterway through which a significant share of the world’s oil supply passes. Both Iranian officials and mediators have confirmed the terms.
What the deal actually covers
This is a framework, not a final peace agreement. The MOU represents an initial understanding between the two sides, with future negotiations expected to tackle thornier issues, including Iran’s nuclear program.
The agreement follows weeks of intensive diplomacy during May and June 2026, primarily mediated by Pakistan and Oman.
