President Trump, Vice President JD Vance, and Iranian Parliament Speaker Mohammad Bagher Qalibaf signed a memorandum of understanding on June 15, 2026, to end nearly four months of conflict.
The agreement immediately reopens the Strait of Hormuz to maritime traffic and lifts the US naval blockade on Iranian ports. The existing ceasefire is also extended to cover hostilities involving Lebanon.
A formal signing ceremony is scheduled for June 19 in Switzerland. That will trigger a 60-day negotiation window focused on Iran’s nuclear program. US officials stress a performance-based approach, meaning sanctions relief hinges on verified compliance, with no immediate large-scale cash transfers.
Tensions peaked in February 2026 over Iran's nuclear ambitions and its control of the Strait of Hormuz, a chokepoint for one-fifth of the global oil supply. The reopening should ease elevated oil prices. If negotiations succeed and sanctions lift, Iran's return to full oil production could add significant supply to global energy markets, influencing inflation and central bank policy.