The US and Iran have signed a 14-point memorandum of understanding that lifts the American naval blockade on Iranian ports and reopens the Strait of Hormuz to commercial traffic. The deal, brokered by Pakistan and Qatar, was electronically signed by President Donald Trump and Iranian President Masoud Pezeshkian in mid-June, with a formal signing ceremony set for June 19.
For crypto markets, the response was swift and predictable. Bitcoin rose approximately 3% to around $66K as geopolitical risk premiums evaporated. Oil, meanwhile, fell nearly 5%, because that’s what happens when a chokepoint handling roughly 20-25% of global oil trade suddenly looks like it might function normally again.
What the Islamabad MoU actually says
The memorandum, dubbed the Islamabad MoU, is sprawling in scope. Its core mandate requires Iran to restore shipping traffic through the Strait of Hormuz to pre-war levels within 30 days. In return, the US must immediately lift the naval blockade it imposed on Iranian ports back in April.
But the agreement goes well beyond maritime logistics. Iran has pledged not to develop nuclear weapons, a commitment that will be fleshed out through broader negotiations over the next two months. Sanctions relief is also on the table, though the specifics are being deferred to subsequent rounds of talks.
