The United States and Iran have signed the Islamabad Memorandum of Understanding, effectively ending hostilities and reopening the Strait of Hormuz. This critical agreement mandates the restoration of commercial shipping traffic and lifts the US naval blockade on Iranian ports.
Market reaction was immediate following the text release on June 17. Bitcoin prices climbed as investors priced in geopolitical stability, while oil futures declined on expectations of increased supply from the region.
Under the deal's concrete provisions, Iran must restore pre-war shipping volumes within 30 days. Commercial vessels will receive toll-free passage for at least 60 days once normal traffic resumes. The agreement also calls for the permanent termination of military operations across all fronts, including Lebanon.
A 60-day window for nuclear negotiations now begins. During this period, temporary sanctions waivers allow limited Iranian oil sales, providing economic incentives without requiring sweeping upfront US concessions. President Trump, Vice President JD Vance, and Iranian Parliament Speaker Mohammad Bagher Ghalibaf finalized the pact via digital ceremony with mediation from Pakistan and Qatar.
Investors should note this remains a framework rather than a final settlement. The 30-day shipping restoration deadline serves as the first compliance test. Any deviation could trigger a rapid market reversal before the nuclear negotiation window closes.