US and Iran Agree to Ceasefire and Reopen Strait of Hormuz

The United States and Iran agreed on June 30, 2026, to cease hostilities and allow the free movement of vessels through the Strait of Hormuz, ending a military conflict that began in February. This agreement followed a volatile weekend of escalations, including Iranian attacks on oil tankers and U.S. bases in Bahrain and Kuwait, and subsequent U.S. retaliatory strikes on Iranian military installations.

The ceasefire builds upon a 14-point memorandum of understanding signed June 17 by President Donald Trump and President Masoud Pezeshkian. The accord lifted a U.S. naval blockade of Iranian ports, allowing Iran to export over 40 million barrels of crude oil. However, significant frictions remain. Iran asserts sole sovereignty over the Strait of Hormuz and intends to charge passage fees after a 60-day toll-free window expires, a move opposed by the U.S. and Gulf Arab states.

Diplomatic efforts continued with indirect talks in Doha, Qatar, led by U.S. envoys Jared Kushner and Steve Witkoff. While the parties disagreed over the use of unfrozen Iranian assets and the rollback of Iran's nuclear program, President Donald Trump indicated he would not resume a broad military campaign, potentially extending negotiations beyond an August 18 deadline. Further meetings are scheduled following the cremation of Supreme Leader Ayatollah Ali Khamenei on July 9. By July 3, tanker traffic through the Strait of Hormuz had returned to pre-war levels.