The United States has waived oil sanctions on Iran after signing an interim memorandum of understanding to end fighting and reopen the Strait of Hormuz.

This agreement attempts to stabilize one of the world's most critical shipping lanes and prevent a broader regional war while Israel and Iran remain in a state of high tension.

President Donald Trump and Iranian President Masoud Pezeshkian signed the interim deal in mid-June [1]. The move follows a period of escalation that included U.S. strikes on Iran that lasted for two consecutive days [2]. The memorandum focuses on the immediate cessation of hostilities and the restoration of maritime traffic through the strategic strait.

Despite the agreement, the status of Iran's nuclear program remains a point of contention. Vice President JD Vance said, "Iran has agreed to allow nuclear inspections" [3]. However, other reports indicate that Tehran has rejected claims regarding a nuclear review [4].

President Trump maintained a stern tone regarding the future of the relationship. "I will do what I have to," Trump said [5]. He said that "Tehran will pay the price" if the terms of the agreement are not met [6].

Iran has indicated that the Strait of Hormuz will not return to its pre-war status and that Tehran intends to manage the strategic waterway moving forward [7]. The deal comes as the U.S. seeks to balance economic pressure with the necessity of keeping global oil markets stable.

U.S. officials have not specified the exact duration of the sanctions waiver, or the specific benchmarks Iran must meet to maintain the interim status of the memorandum [1].

“"I will do what I have to."”

The interim deal represents a tactical shift toward de-escalation to protect global energy supplies, but it does not signal a full diplomatic normalization. The contradiction between U.S. claims of agreed nuclear inspections and Iranian denials suggests that the core drivers of the conflict remain unresolved, leaving the region vulnerable to renewed hostilities if the memorandum's fragile terms are breached.