The US and Iran have signed a Memorandum of Understanding aimed at de-escalating tensions and reopening the Strait of Hormuz to global shipping traffic. The deal, signed electronically between June 12-15, was executed by President Donald Trump, Vice President JD Vance, and Iranian parliament speaker Mohammad Bagher Qalibaf.
Vice President Vance confirmed that the memorandum outlines general principles and explicitly links any benefits Iran receives to verifiable compliance with the agreement’s terms. No cash was released to Iran upon signing. No frozen funds were unlocked. Instead, 65% of sanctions relief is conditional on future compliance, a mechanism designed to keep leverage firmly on the American side of the table.
The Strait of Hormuz, which handles about 20% of global oil trade, will reopen to shipping traffic immediately. Traffic increases will be gradual, not instantaneous.
Iran has committed to abstaining from developing nuclear weapons. The specifics of how that commitment gets monitored and enforced are not part of this initial memorandum. Those details will be hashed out during a 60-day negotiation window that begins after the signing.
A formal signing ceremony is planned for June 20, likely in Switzerland.
