President Donald Trump said Wednesday that the United States and Iran have reached a peace agreement to end their armed conflict [1].
The deal represents a significant shift in Middle East geopolitics by promising to reopen the Strait of Hormuz, a critical chokepoint for global energy shipments. This move could stabilize international oil markets and reduce the risk of direct military confrontation between the two nations.
Speaking at the G7 summit in Évian, France, on June 17, 2026 [1], Trump said the agreement is designed to stop the fighting and restore maritime access [1]. While some reports indicated the agreement was confirmed as early as June 16 [3], the president used the G7 platform to highlight the progress toward lasting peace.
Trump said the agreement was already "negotiated in gran medida" (largely negotiated), specifically including the opening of the Strait of Hormuz [4]. The agreement seeks to resolve long-standing tensions that have frequently threatened regional stability, and global trade routes.
Vice President JD Vance provided further details regarding the transparency of the deal. Vance said the text of the memorandum of understanding reached with Iran will be made public this Friday, June 22, 2026 [2].
Though the discussions occurred during the G7 summit in France [1], other reports indicate the final agreement is expected to be signed in Switzerland [5]. The diplomatic push comes after months of reported advances in negotiations aimed at a comprehensive ceasefire.
"We have reached a peace deal with Iran," Trump said [3].
“"We have reached a peace deal with Iran."”
The reopening of the Strait of Hormuz is the most critical economic component of this agreement, as the waterway carries a significant portion of the world's petroleum. By transitioning from a policy of maximum pressure to a negotiated peace, the U.S. administration is prioritizing regional stability and energy security over the previous strategy of total isolation of the Iranian government.
