The United States and Iran signed a memorandum of understanding to end combat between the two nations [1].
This agreement aims to halt hostilities and resolve a long-standing dispute over navigation fees, often called the "service fee," in the Strait of Hormuz [1, 2]. Because the strait is a critical artery for global oil shipments, any stability in the region has immediate implications for international energy markets.
President Donald Trump and Vice President Bans signed the document alongside Iranian Parliament Speaker Ghalib [1]. The official signing ceremony took place in Switzerland [1].
Trump said he was pleased to sign the memorandum and noted that parts of the Strait of Hormuz had already been opened. He said that the strait would be completely opened on Friday, May 19, 2024 [1].
As part of the deal, the memorandum provides for a 60-day period of free navigation fees in the Strait of Hormuz [1]. Vice President Bans said he expects the strait to remain open without navigation fees over the long term, though he noted that further practical negotiations would be necessary to finalize those details.
Despite the signing, some contradictions remain regarding the finality of the deal. While the memorandum was announced on May 15, 2024 [1], some reports indicated that Trump demanded revisions to the text, suggesting the document was not yet final [2]. Additionally, while Trump announced a full opening of the waterway, other reports suggest that negotiations over the Hormuz fees remain difficult, and a final agreement has not been reached [1].
An Iranian official said on May 21, 2026, that the latest peace proposal from the U.S. helped bridge some of the gaps between the two countries [3].
“The United States and Iran signed a memorandum of understanding to end combat between the two nations.”
The signing of this memorandum represents a diplomatic attempt to reduce military tension in one of the world's most volatile maritime chokepoints. However, the discrepancy between the public announcement of a 'complete opening' and the ongoing disputes over navigation fees suggests that the agreement is a framework for further negotiation rather than a comprehensive peace treaty. The focus on the Strait of Hormuz indicates that economic leverage and maritime access remain the primary bargaining chips for both Washington and Tehran.
