US, Iran sign MOU for 60-day ceasefire, toll-free Hormuz transit

The United States and Iran have signed a memorandum of understanding (MOU) to end their monthslong conflict, with a formal signing ceremony planned for later this week in Switzerland. U.S. President Donald Trump, Vice President JD Vance, and Iran's parliamentary speaker Mohammad Bagher Ghalibaf inked the MOU, which extends the countries' ceasefire for 60 days. During this period, negotiations will take place to address nuclear and other issues with the aim of reaching a final peace deal.

The MOU explicitly states that the Strait of Hormuz will remain open and toll-free for 60 days, a crucial aspect for global energy and commodity transit. U.S. officials expect this toll-free passage to be a permanent feature of the final agreement. While details are still emerging, officials indicated that further information would be released within 24-48 hours. They also anticipate a significant increase in ship movements through the vital waterway, which Iran had largely closed during the conflict.

South Korean President Lee Jae Myung welcomed the ceasefire, expressing hope for Middle East stability and the safe resumption of shipping through the Strait of Hormuz. The deal also touches upon potential U.S. benefits contingent on Iran's performance, including the possibility of releasing frozen funds and easing sanctions, with a significant fund earmarked for Iran's reconstruction tied to verifiable milestones.