The United States and Iran have released a draft Memorandum of Understanding to end conflict and reopen the Strait of Hormuz for commercial navigation.
The agreement seeks to stabilize global energy markets and halt a 110-day conflict [1] involving the U.S., Israel, and Iran. By restoring safe passage through one of the world's most critical shipping lanes, the deal aims to prevent further escalation in the region.
The preliminary text outlines a 60-day cease-fire [3] and a temporary waiver of Iranian oil sanctions. It establishes a pathway toward a comprehensive peace agreement, with a formal signing ceremony scheduled for this Friday, June 20, 2026, in Geneva, Switzerland [2, 4].
Reports on the specific structure of the agreement vary. Some sources said the deal is a 14-point agreement [3], while other reports said it is a 12-point plan [5].
Beyond the immediate cease-fire, the proposal includes a $300 billion fund intended for post-conflict reconstruction [5]. The deal also outlines a timeline for U.S. withdrawal from the region [5].
President Donald Trump and the Iranian president are involved in the agreement. While some reports said the leaders have already digitally signed the document [1], other officials said the current text is a preliminary memorandum [1].
“The agreement seeks to stabilize global energy markets and halt a 110-day conflict.”
This agreement represents a significant diplomatic pivot to resolve a high-tension military standoff. By linking the reopening of the Strait of Hormuz to temporary sanctions relief and a reconstruction fund, the U.S. and Iran are using economic incentives to create a window for a broader peace settlement. The success of the 60-day cease-fire will likely determine if the parties can move from a preliminary memorandum to a permanent treaty.
