US and Iran Sign Peace Deal, Strait of Hormuz Reopens June 17

The United States and Iran signed a preliminary memorandum of understanding on June 15 to end a 100-day war that killed more than 3,400 people. The deal includes a ceasefire across all fronts, including Lebanon, and commits Iran to never develop nuclear weapons. The Strait of Hormuz, through which about one-fifth of the world’s oil flows, will reopen within 30 days. A formal signing ceremony is scheduled for Friday in Geneva.

What the Deal Covers

The memorandum of understanding is about one and a half pages long and described as very general. US Vice President JD Vance said nuclear inspectors will be allowed back into Iran to help destroy its highly enriched uranium stockpile. Trump stated Iran agreed to never have a nuclear weapon. The deal does not address other previous US demands, such as dismantling Iran’s ballistic missiles or ending support for proxy armed groups in the region.

Iran’s state media published 14 points it says make up the deal’s bulk. Point 1 calls for permanent and immediate cessation of hostilities on all fronts, including Lebanon. Iran says its support of regional proxies has been removed from the agenda. The text remains largely unpublished, creating uncertainty about what both sides actually agreed to.

Oil Markets and the Strait of Hormuz

Trump said the Strait of Hormuz will be completely open by Friday. Global oil prices fell to their lowest levels since early March, the day the war began, with prices dropping to $80 per barrel. The US will allow Iran to immediately start selling oil and fuel again, provided Iran keeps to the deal’s terms, including free navigation through the strait.

Three oil tankers and two cargo ships already passed through the strait area that had been subject to a US naval blockade. However, uncertainty remains about whether shipping companies and insurers will feel the strait is safe for passage. Reopening oil and gas sites is complex, and some regional infrastructure has been damaged by drone attacks.

Lebanon Ceasefire Remains Contested

The deal includes a ceasefire in Lebanon but does not require Israeli troops to withdraw from areas they occupy. Israeli Prime Minister Benjamin Netanyahu said forces will remain in Lebanon, Gaza, and Syria for as long as necessary. Iran has tied the tentative peace deal to Israeli withdrawal from Lebanon, creating a point of disagreement.

Hezbollah welcomed the Iran-US agreement, saying it resulted in a comprehensive ceasefire across all fronts. However, Israeli drone strikes have continued. Lebanon’s Prime Minister Nawaf Salam said diplomatic efforts with the US are continuing to achieve full Israeli withdrawal from southern Lebanon. Trump said Netanyahu must be more responsible in dealing with Hezbollah.

Next Steps and Negotiations

A formal signing ceremony will take place Friday in Geneva at Switzerland’s Burgenstock resort near Lucerne. US Vice President JD Vance and Iranian parliamentary speaker Mohammad Bagher Ghalibaf will attend. Trump said he will send the deal to Congress for review. Two months of final negotiations will begin immediately after Friday’s signing, with a 60-day window to reach decisions on lifting economic sanctions and Iran’s nuclear programme. Technical talks on Iran’s nuclear programme are expected to begin this week.

Final Thoughts

The US-Iran peace deal ends a costly 100-day war but leaves major details unresolved. Oil prices fell sharply on the news, and the Strait of Hormuz will reopen within 30 days. Investors should watch the 60-day negotiation period for clarity on sanctions relief and nuclear terms.

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