The United States and Iran have signed a memorandum of understanding to end a military conflict that has disrupted global energy markets since late February. The deal, announced on June 15, sets the stage for the gradual reopening of the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil supply passes daily.
The MoU was signed electronically by President Donald Trump and Iranian Parliament Speaker Mohammad Bagher Qalibaf representing Tehran. A formal signing ceremony is scheduled for June 19 in Switzerland.
What the deal actually covers
The core of the agreement focuses on restoring commercial shipping through the Strait of Hormuz. Iran and Oman will take on management roles in overseeing the strait’s reopening, while the US naval blockade on Iranian ports will be lifted as part of the arrangement.
Nuclear negotiations, along with several other contentious issues, have been deliberately punted. The MoU allows for up to 60 days of deferred discussions on those topics after the signing.
