The United States and Iran have reached a framework agreement to reopen the Strait of Hormuz, the narrow waterway that handles roughly 20% of global oil shipments. Vice President JD Vance announced the deal on June 14, calling it a “win-win” for both nations, with a formal signing expected around June 19 in Geneva.
Markets reacted immediately. Bitcoin jumped approximately 3% to around $66,000, while WTI crude dropped nearly 5% to below $81 per barrel.
What the deal actually says
The agreement establishes a 60-day toll-free transit period for commercial shipping through the Strait. During that window, the US will lift its naval blockade on Iranian ports, and both countries commit to negotiations aimed at preventing Iran from obtaining nuclear weapons.
Pakistan played a mediation role in brokering the framework. Key figures on the Iranian side include Deputy Foreign Minister Kazem Gharibabadi, while the US effort was driven by President Donald Trump and Vance.
