The United States and Iran have signed a memorandum of understanding aimed at extending their ceasefire, reopening the Strait of Hormuz and creating a framework for negotiations on a broader settlement after months of conflict. US President Donald Trump signed the agreement at the Palace of Versailles near Paris on Wednesday, while Iranian President Masoud Pezeshkian signed the document in Tehran. Officials from both countries confirmed that the memorandum entered into force immediately.

The memorandum of understanding is scheduled to be officially signed on Friday in Switzerland.

The US-Iran memorandum of understanding includes a 60-day ceasefire and Strait of Hormuz reopening, easing geopolitical risk across equities and crypto

The signing comes before the two countries are expected to ink the agreement in person during a meeting in Switzerland on Friday.