The US and Iran have signed a 14-point memorandum of understanding designed to end nearly a year of military conflict between the two nations. The deal, signed on June 17 at the Palace of Versailles by President Donald Trump and Iranian President Masoud Pezeshkian, took immediate effect and includes two provisions that matter enormously for global markets: the reopening of the Strait of Hormuz for commercial shipping and the lifting of US sanctions on Iranian oil exports.
Oil prices promptly fell to three-month lows. Global stock markets hit record highs. And Bitcoin surged past $65,000.
What the deal actually says
The MoU is an interim framework, not a final treaty. The agreement halts active military operations across multiple fronts, including Lebanon, and establishes a 60-day negotiation window to tackle the genuinely hard stuff: Iran’s nuclear program, uranium enrichment levels, and the broader architecture of a lasting peace.
Iran will be allowed to sell oil freely once sanctions are lifted. The Strait of Hormuz, through which roughly 20% of the world’s oil passes on any given day, will reopen to commercial shipping immediately.
