US-Iran Peace Deal Signed: Strait of Hormuz Reopens, Oil Falls 5%, June 16

The United States and Iran signed a memorandum of understanding on June 14 to end their war, which has lasted 3.5 months and closed the Strait of Hormuz. The deal includes a 60-day ceasefire and lifts a US naval blockade on Iranian ports. A formal signing ceremony is scheduled for Geneva on June 19. Oil prices fell 5% to $82.84 per barrel, and global stock markets rose sharply on the announcement.

Deal Signed Electronically, Formal Ceremony Set for Friday

Senior US administration officials said the memorandum was signed electronically by President Donald Trump, Vice President JD Vance, and Iranian Parliament Speaker Mohammad-Bagher Ghalibaf. The formal signing ceremony will take place in Geneva on June 19, with Vance and chief Iranian negotiator Mohammad-Bagher Ghalibaf in attendance. Pakistan’s Prime Minister Shehbaz Sharif, who mediated the talks, announced the agreement on Sunday. Full details of the deal have not been released yet but are expected within 24-48 hours.

Strait of Hormuz Reopens as Oil Prices Plunge

Trump declared the Strait of Hormuz “will be completely open” by Friday. The waterway, through which about 20% of the world’s oil and gas normally flows, was effectively closed since the US and Israel launched airstrikes on Iran on February 28. Brent crude fell more than 5% to $82.84 (£61.70) per barrel after the deal was announced. Three oil tankers and two cargo ships passed through the strait on Monday evening, marking the first movement since the blockade began. Global stock markets surged, with Japan’s Nikkei 225 closing 5% higher and South Korea’s Kospi ending up 5.2%.

60-Day Talks on Nuclear Program and Sanctions

Both sides will spend the next 60 days negotiating details of a permanent agreement. Technical discussions led by Vice President Vance will address Iran’s nuclear program, which Trump said must never produce a nuclear weapon. The talks will also cover sanctions relief and access to billions of dollars in frozen Iranian assets. Trump said zero funds had been released as a result of signing the memorandum, stating “we don’t pay for play.” Iran’s deputy foreign minister confirmed “a permanent and immediate end to the war has been declared on all fronts.”

Lebanon Ceasefire Holds Despite Israeli Objections

The deal includes a ceasefire in Lebanon but does not require Israeli troops to withdraw from occupied territory. Israeli Prime Minister Benjamin Netanyahu said Israeli forces would remain in Lebanon, Gaza, and Syria “for as long as necessary.” Netanyahu occupies around 570 square kilometres (220 square miles) of Lebanese territory. On Sunday, an Israeli drone killed a driver in a targeted strike, marking the first deadly attack since the peace agreement was announced. Lebanese Prime Minister Nawaf Salam said diplomatic efforts with the US are continuing to achieve full Israeli withdrawal from southern Lebanon.

Final Thoughts

The US-Iran deal reopens the Strait of Hormuz and eases global oil markets after 3.5 months of disruption. However, the full text remains unpublished, and Netanyahu’s refusal to withdraw from Lebanon raises questions about the ceasefire’s durability over the next 60 days of negotiations.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.