U.S. and Iran Sign Deal to End Conflict and Reopen Strait of Hormuz

Jun 14, 2026

The U.S. and Iran have reached an initial deal to end a three-month war, extending a ceasefire for 60 days and reopening the vital Strait of Hormuz. The agreement, set for a Friday signing, caused oil prices to drop nearly 5%. Key issues, including Iran's nuclear program and the release of frozen assets, remain subject to further negotiation. While European leaders welcomed the deal, Israeli officials have expressed opposition to its terms regarding Lebanon.

US-Iran peace deal

▪Mediators from Pakistan and Qatar played a key role in the negotiations.
▪A formal signing ceremony for the memorandum of understanding is scheduled for Friday in Switzerland.
▪The U.S. and Iran have reached an initial agreement to end a conflict that began on February 28.
▪The agreement extends a tenuous ceasefire for 60 days, during which further negotiations on a permanent deal will occur.
▪The war has killed at least 7,000 people, mostly in Iran and Lebanon.

Strait of Hormuz reopening

▪The S&P 500 stock index rose by 1.7% to 1.9% after the deal was announced.
▪The deal includes reopening the Strait of Hormuz, a vital passage for about 20% of the world's oil.
▪Following the announcement, Brent crude oil prices fell by nearly 5% to a three-month low.
▪As part of the agreement, the U.S. will lift its naval blockade of Iranian ports.

Lebanon ceasefire terms

▪U.S. officials said Israel's withdrawal from Lebanon is not a condition of the agreement.
▪The fighting in Lebanon has displaced over 1.2 million people.
▪The agreement calls for an end to fighting between Israel and Hezbollah in Lebanon.
▪Israeli officials stated they would keep troops in southern Lebanon and reserve the right to respond to Hezbollah attacks.

Iranian nuclear program limits

▪The future of Iran's nuclear program remains unresolved and will be the subject of negotiations over the next 60 days.
▪President Trump stated in an interview that Iran would be permitted low-level nuclear enrichment.

Frozen assets release

▪U.S. Vice President JD Vance said the signed memorandum included "a very significant sanctions relief package" for Iran.
▪Iran seeks the release of billions of dollars in frozen assets and the lifting of sanctions as part of a final deal.

International response to deal

▪UN Secretary-General António Guterres called the agreement a "critical step."
▪Some Israeli officials reacted negatively, with National Security Minister Itamar Ben Gvir stating the deal does not bind Israel.
▪Leaders from the U.K., France, Germany, and Italy issued a joint statement welcoming the deal.