Trump and Iran Sign Peace Deal to Reopen Hormuz

Following a conflict that began in February 2026 with joint U.S.-Israeli strikes, Donald Trump and Iranian President Masoud Pezeshkian signed the Islamabad Memorandum of Understanding on June 17, 2026. The agreement, brokered by Pakistan and Qatar, mandates an immediate cessation of military operations on all fronts, including Lebanon, and the removal of the U.S. naval blockade of Iranian ports. A central provision is the reopening of the Strait of Hormuz to commercial shipping, which the U.S. insists must remain toll-free.

The pact establishes a 60-day window for technical negotiations to reach a final agreement on Iran's nuclear program, specifically the dilution of highly enriched uranium under International Atomic Energy Agency supervision. In exchange, the U.S. issued temporary sanctions waivers for Iranian oil and petrochemicals and proposed a $300 billion private reconstruction fund for Iran.

Implementation has been volatile. While oil tankers resumed transit in mid-June, causing global crude prices to drop, the process was strained by continued Israeli airstrikes in Lebanon and conflicting claims over the Strait's status. High-level talks in Switzerland were postponed on June 19 due to these tensions. Despite the framework, Israeli Prime Minister Benjamin Netanyahu stated Israel is not a party to the deal and will maintain security zones in southern Lebanon. U.S. lawmakers have also criticized the agreement for a lack of transparency and insufficient nuclear safeguards.