President Donald Trump announced that the Strait of Hormuz, the narrow waterway through which roughly a fifth of the world’s oil supply passes, will be fully open and toll-free by Friday. The declaration came alongside a broader memorandum of understanding with Iran aimed at preventing the country from developing nuclear weapons.
Bitcoin responded by pushing past $65,000 as traders digested the announcement. Oil prices moved in the opposite direction, falling on expectations that one of the world’s most persistent supply bottlenecks is about to unclog.
What the deal actually says
The MoU, announced on June 14-15, establishes a 60-day ceasefire window during which the US and Iran will negotiate nuclear disarmament terms. The formal signing ceremony is scheduled for June 19-20 in Geneva, Switzerland. Iran’s signatory is Parliament Speaker Mohammad Bagher Ghalibaf.
On the American side, the agreement requires lifting the US naval blockade on Iranian ports. In return, Iran commits to allowing unrestricted, toll-free commercial shipping through the Strait of Hormuz. Trump summarized the arrangement on social media: “Ships of the World, start your engines. Let the oil flow!”
