The U.S. has lifted its naval blockade of Iran as a 60-day interim peace deal signed by President Trump takes effect, reopening the critical Strait of Hormuz to oil tankers. The agreement requires Iran to allow UN nuclear inspections and dilute its enriched uranium in exchange for sanctions relief. The deal, which also establishes a $300B reconstruction fund, has drawn sharp criticism from Israel and some U.S. Republicans.
US-Iran interim peace agreement
- ▪U.S. Senator Bill Cassidy called the deal the "worst foreign policy blunder in decades."
- ▪The deal is described as "performance-based," with benefits for Iran contingent on its compliance with commitments
- ▪A $300 billion fund for Iran's reconstruction will be established with regional partners, though the U.S. is not required to contribute
- ▪President Trump said he signed the deal to avoid "economic catastrophe" in the U.S. caused by the war
- ▪Iranian Supreme Leader Ayatollah Mojtaba Khamenei endorsed direct negotiations with the U.S. for the first time
- ▪The agreement, a Memorandum of Understanding, establishes a 60-day period for negotiations on a final deal
- ▪President Donald Trump and Iranian President Masoud Pezeshkian signed a 14-point interim peace agreement on June 17, 2026
- ▪Vice President JD Vance, the lead U.S. negotiator, defended the deal against criticism from Israel
Strait of Hormuz reopening
- ▪On the night of June 17, 2026, more than 12.5 million barrels of oil transited the Strait of Hormuz
- ▪An estimated 550 merchant ships that were trapped in the Persian Gulf will need to exit through the strait
- ▪The strait's main central route remains closed for the clearing of an estimated 80 mines, with ships using alternative routes
- ▪Iran committed to allowing safe passage for commercial vessels through the Strait of Hormuz at no charge for 60 days
Naval blockade removal timeline
- ▪Within 30 days of a final deal, the U.S. has committed to removing its forces from the "proximity of Iran."
- ▪U.S. Central Command announced the lifting of its naval blockade on Iranian ports on Thursday, June 18, 2026
- ▪The agreement states the U.S. blockade will end fully within 30 days of the memorandum's signing
Iran nuclear weapons prohibition
- ▪Iran's stockpile of highly enriched uranium must, at a minimum, be diluted or "downblended" under international supervision
- ▪Iran will invite the UN's International Atomic Energy Agency (IAEA) to inspect its nuclear sites
Sanctions relief timeline
- ▪The U.S. will issue waivers for oil exports and related banking and transportation services during the 60-day negotiation period
Frozen Iranian assets release
- ▪The specific procedures for releasing the frozen assets will be determined during the 60-day negotiations
- ▪Some of Iran's frozen assets will be released during the negotiation period to reward compliance with the agreement
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