The United States and Iran have agreed to stop shooting at each other. After more than 100 days of conflict that choked off a fifth of the world’s oil supply, both sides announced a tentative peace framework on June 14-15 that includes an immediate halt to military operations, the lifting of the US naval blockade, and the reopening of the Strait of Hormuz to commercial shipping.
Markets reacted exactly how you’d expect when a major chokepoint for global energy suddenly reopens. Oil dropped roughly 5% to around $80 per barrel, and Bitcoin climbed above $65,000 as risk appetite returned in force.
What’s in the deal
The framework centers on a memorandum of understanding containing approximately 12 to 14 points, though the full text hasn’t been publicly released yet. Both parties are scheduled to sign the MOU in Geneva on June 19, with a final comprehensive peace settlement targeted within 60 days of that signing.
Pakistan played a mediating role in brokering the agreement, alongside other regional stakeholders. The deal reportedly addresses sanctions relief and Iran’s nuclear program, two issues that have defined US-Iran tensions for decades.
