U.S. and Iran Reach Deal to Reopen Hormuz Without Fees

President Donald Trump announced that the United States and Iran have reached a deal to end the current conflict, reopen the Strait of Hormuz without tolls, and immediately lift the U.S. naval blockade on Iran.

Trump said the agreement with the Islamic Republic of Iran was finalized and that ships should be allowed to move freely again through one of the world’s most important oil routes.

Pakistan, which helped mediate the talks, said the formal signing of the memorandum of understanding is expected to take place on June 19 in Switzerland.

Iran also confirmed the agreement, saying the draft MOU has been finalized and that military operations across multiple fronts, including Lebanon, are set to end immediately and permanently.

Oil Prices Drop After Hormuz Announcement

Global oil prices fell sharply after the announcement. Brent crude dropped more than 4% to about $83.82 per barrel, while U.S. WTI crude fell more than 4.6% to around $80.95 in early Asian trading.

The market reaction came as traders responded to the expected reopening of the Strait of Hormuz and the easing of fears over oil supply disruptions.

Frozen Assets and Sanctions Still Unresolved

Iranian officials said the next phase will focus on 60 days of negotiations following the MOU signing. Those talks are expected to center on sanctions relief and the release of Iranian frozen assets.

Iran claimed the agreement does not mean trust in the United States, warning that it will monitor implementation closely and take its own action if the other side violates the terms.

The deal may calm global energy markets, but the hardest issues remain ahead: sanctions, frozen assets, Iran’s regional terror network, and whether Tehran will actually keep its word.