President Trump and Iranian President Masoud Pezeshkian have signed a preliminary memorandum of understanding aimed at reopening the Strait of Hormuz to commercial shipping and launching a 60-day window for nuclear talks. The deal sent oil prices tumbling roughly 5% and pushed Bitcoin above $66,000 as markets recalibrated around lower geopolitical risk.
The Strait of Hormuz is a narrow waterway between Iran and Oman through which roughly 20% of the world’s oil supply has historically flowed. Its closure during the US-Israel-Iran escalation created significant disruption for global energy markets.
What the deal actually says
The MOU, signed around June 17, establishes two key pillars. First, Iran commits to refraining from pursuing nuclear weapons and agrees to begin formal discussions on its nuclear program within a 60-day negotiation window. Second, the Strait of Hormuz reopens for toll-free commercial passage during that same two-month period, after which further guidance on shipping terms could be facilitated by Oman.
In exchange, the US eases certain sanctions on Iran. The deal arrived after extensive negotiations that began in May, following a period of sharp military tensions between the US, Israel, and Iran that had effectively shut down the strait and sent energy prices soaring.
