The United States and Iran signed a peace agreement on June 18, 2026 [1], ending the ongoing war between the two nations.

The deal aims to stabilize global energy markets by reopening the Strait of Hormuz. This strategic waterway is critical for international oil shipments, and the agreement seeks to remove the military and political barriers that have restricted its flow.

President Donald Trump and Iranian President Masoud Pezeshkian signed the agreement remotely [1]. Following the signing, Trump said, "Let the oil flow" [3]. The memorandum of understanding was finalized ahead of a planned formal ceremony scheduled for June 19, 2026, in Switzerland [2].

Pakistan Prime Minister Shehbaz Sharif postponed his planned visit to Switzerland for the event. A spokesperson for the prime minister said the "MoU already signed remotely" [4], rendering the immediate travel unnecessary.

While the agreement was finalized electronically, the diplomatic coordination involved several regional players. The move comes as both administrations seek to de-escalate tensions that have threatened global economic stability, specifically regarding the transit of crude oil through the Persian Gulf.

Trump confirmed he signed a copy of the U.S.-Iran agreement alongside Pezeshkian [1]. The remote nature of the signing allowed the parties to solidify the terms of the ceasefire and the reopening of the strait without the immediate logistical constraints of an international summit.

“Let the oil flow”

The remote signing of this agreement suggests a prioritization of immediate economic relief over traditional diplomatic theater. By reopening the Strait of Hormuz, the U.S. and Iran are addressing a primary trigger for global oil price volatility. The postponement of Prime Minister Shehbaz Sharif's visit further indicates that the core terms of the deal were settled independently of regional observers, signaling a direct bilateral resolution to the conflict.