The US and Iran have agreed to formally sign a memorandum of understanding on Friday that would reopen the Strait of Hormuz to commercial shipping, ending a blockade that has roiled global energy markets for months. The signing ceremony is scheduled for June 19 in Switzerland.
The deal doesn’t just matter for oil traders. Crypto markets added roughly $60 billion in total market capitalization on the news, with Bitcoin rising approximately 2%.
What the deal actually includes
The framework agreement is structured as a 60-day ceasefire between the two nations. Under its terms, the US will lift its naval blockade on Iranian ports, and Iran will clear mines it deployed in the strait during the earlier phases of the conflict.
President Trump declared that the strait would be “completely open” once the deal is signed, with oil shipments set to resume immediately. Ships will be allowed free passage without tolls, a notable detail given Iran’s earlier attempts to extract transit fees during a previous ceasefire phase.
