US and Iran reach deal to reopen Strait of Hormuz, formal signing set for 19 June in Switzerland

The announcement

Donald Trump used his Truth Social platform on Sunday to confirm the deal, which coincided with his 80th birthday. He authorised the toll-free reopening of the strait and the immediate lifting of the US naval blockade, writing that "the agreement with the Islamic Republic of Iran is already complete."

I hereby fully authorize the toll-free opening of the Strait of Hormuz and, simultaneously, I authorize the immediate lifting of the U.S. naval blockade. Ships of the world, start your engines! Let the oil flow!

Iranian Deputy Foreign Minister Ali Gharaibabadi confirmed the final memorandum of understanding had been completed and that the official signing of the Islamabad Agreement would take place on Friday 19 June in Switzerland, according to the Fars news agency.

What the deal includes

Tehran committed to immediately reopen the Strait of Hormuz to all commercial vessels and reiterated its pledge not to produce or acquire nuclear weapons. The text also says Iran will dilute its stockpile of highly enriched uranium, although the most contentious points — the enrichment programme itself and the reported 400 kilograms of enriched uranium inside the country — have been postponed. Those details will be negotiated over the next 60 days.

The immediate and permanent end to the war and military operations on various fronts, including Lebanon, will be declared as of tonight.

In exchange, Washington will lift the maritime blockade it imposed on Iranian ports and unfreeze Iranian financial assets. Gharaibabadi said the commitments Tehran obtained far outweighed the concessions it made.

Mediation and next steps

The preliminary pact, also called a memorandum of understanding, was agreed virtually through a diplomatic meeting that included representatives from the two countries and the mediators, Qatar and Pakistan. Prime Minister Shehbaz Sharif of Pakistan played a key role in brokering the talks.

Both sides will continue negotiating during the next 60 days with the aim of reaching a final agreement. The formal agreement to be signed on 19 June in Switzerland gives the process a concrete milestone, though the tougher nuclear issues remain parked for now.

Market and conflict background

The Strait of Hormuz, through which 20% of the world’s oil transited before the crisis, has been blocked since 28 February when Iran’s actions triggered a war and prompted the US naval response. The reopening is expected to stabilise energy markets, which have been unsettled for more than three months.

Soon we will publish the text of the memorandum of understanding and the people will see how many achievements we have obtained and how many commitments we have assumed.