The US and Iran have struck a preliminary memorandum of understanding aimed at dialing back a conflict that has rattled global energy markets for months. President Donald Trump and Iranian President Masoud Pezeshkian reached the deal on June 14-15, with a formal signing scheduled for June 19 in Switzerland.
Markets liked what they heard. Brent crude fell over 4% to around $77-80 per barrel, hitting three-month lows. Stock equity futures climbed. Bitcoin saw a modest uptick on broader risk-on sentiment.
What the deal actually includes
The MOU covers four major pieces. First, a 60-day ceasefire extension following the escalation triggered by US-Israeli strikes on February 28. Second, the reopening of the Strait of Hormuz, which handles roughly 20% of global oil and LNG trade. Third, the lifting of the US naval blockade. And fourth, the beginning of nuclear program discussions, which could eventually lead to sanctions relief for Iran.
Pakistan and Qatar mediated the agreement, which both sides have characterized as an interim framework rather than a final peace accord.
