U.S. President Donald Trump and Iranian President Pezeshkian electronically signed a memorandum of understanding on June 18 to end military hostilities [1], [2].
The agreement marks a critical attempt to stabilize global energy supplies and prevent further escalation in the Middle East by addressing the long-standing nuclear dispute. A breakdown in these talks could jeopardize the security of one of the world's most vital maritime chokepoints.
Under the terms of the memorandum, oil sanctions against Iran have been lifted [1]. Additionally, transit fees for the Strait of Hormuz will be waived for 60 days [2], [4]. This electronic signing process was conducted remotely, meaning no physical signing ceremony will take place [1].
Iranian Foreign Minister Hassan Araqchi said negotiations regarding the nuclear issue and the lifting of sanctions will continue for 60 days [1], [3]. These talks are scheduled to run from June 18 through Aug. 16, 2026 [1]. The Iranian negotiation team is expected to travel to Geneva, Switzerland, on June 19 to continue the process [2], [3].
While some reports indicate the memorandum is now in effect, other sources suggest the agreement remains provisional pending final approval from President Trump [1], [2]. There are also conflicting reports regarding the exact timing of the signing, with some sources suggesting a physical signing in Switzerland was originally envisioned for June 19 [2].
An Iranian government spokesperson said the waiver of transit fees in the Strait of Hormuz will last for 60 days [4]. The primary goal of the current diplomatic push is to secure a comprehensive agreement that ensures regional stability, and the consistent flow of energy [1], [3].
“The agreement initiates 60 days of negotiations over nuclear issues and oil sanctions.”
This memorandum represents a tactical ceasefire designed to create a diplomatic window for a broader nuclear deal. By linking immediate economic relief—such as the lifting of oil sanctions and the waiver of maritime fees—to a fixed 60-day negotiation period, both nations are testing the viability of a return to diplomacy without committing to a permanent treaty immediately. The use of electronic signatures and remote coordination suggests a desire to bypass the political optics of a formal summit until more concrete terms are reached.
