President Donald Trump and Iranian President Masoud Pezeshkian formalized a memorandum of understanding at the Palace of Versailles on June 17. Hosted by French President Emmanuel Macron, the signing cements an interim agreement extending a 60-day ceasefire between the United States, Iran, and their respective allies.
The 14-point deal reopens the strategic Strait of Hormuz, lifts specific naval blockades, and unfreezes Iranian assets. In exchange, Tehran committed to halting nuclear weapons development. The agreement also establishes a $300 billion reconstruction fund for post-conflict rebuilding efforts.
Markets reacted immediately to the reduction in geopolitical risk. Bitcoin briefly surpassed $67,000 following the announcement as traders priced in lower tension. Oil prices declined modestly as the reopening of the Strait of Hormuz signaled increased global supply.
This arrangement remains an interim diplomatic pause rather than a comprehensive peace deal. President Trump warned that U.S. actions would resume if commitments are not honored. For investors, the 60-day window creates a period of relative calm, with late August marking the next critical inflection point for compliance and market volatility.