The US and Iran have signed a memorandum of understanding extending their ceasefire for an additional 60 days. The MOU, electronically signed around June 17 by US President Donald Trump and Iranian President Masoud Pezeshkian, builds on an initial truce reached back in April 2026. The centerpiece: reopening the Strait of Hormuz for commercial shipping, a chokepoint that carries roughly 20% of the world’s oil supply.
What the Strait means for everything
US naval blockades during the conflict had effectively choked one of the most critical shipping lanes on the planet. Regional energy infrastructure, including Qatar’s LNG facilities, sustained hits during the hostilities. Reconstruction costs are now estimated to exceed $25 billion.
Oil markets responded to earlier truce signals with relief. Brent and WTI crude both declined more than 15% after the initial April ceasefire announcement, unwinding the geopolitical risk premium that had been baked into prices.
Crypto’s geopolitical trade
