Trump and Iran Sign Peace Deal to Reopen Hormuz

President Donald Trump and Iranian President Masoud Pezeshkian signed a 14-point memorandum of understanding on June 17, 2026, to end a conflict that began in February with joint U.S.-Israeli strikes. The agreement, brokered by Pakistan and Qatar, mandates the immediate removal of the U.S. naval blockade of Iranian ports and the reopening of the Strait of Hormuz to commercial shipping. In exchange, Iran reaffirmed its commitment to not develop nuclear weapons and agreed to a 60-day window to negotiate the dilution of its enriched uranium stockpile under International Atomic Energy Agency supervision.

The deal includes a proposed $300 billion reconstruction fund for Iran, primarily backed by private and regional investment, and the release of frozen Iranian assets. However, the process has been volatile. While Trump claimed the strait would be toll-free, Iranian officials asserted their right to collect service fees. Tensions further escalated when Israel, which was not a party to the deal, continued airstrikes against Hezbollah in Lebanon, leading Iran to briefly re-close the strait and postpone technical talks in Switzerland.

Despite these frictions, the U.S. Treasury issued a 60-day license on June 22 authorizing Iranian oil exports to stabilize global energy prices. The agreement has faced bipartisan criticism in the U.S. Congress and strong opposition from the Israeli government, with Prime Minister Benjamin Netanyahu vowing to maintain security zones in southern Lebanon. Formal signing ceremonies and technical negotiations are scheduled to continue in Switzerland to finalize a comprehensive peace treaty.