Key facts
- US President Donald Trump announced a signed memorandum of understanding (MoU) with Iran.
- The deal aims to open the Strait of Hormuz and lift the US naval blockade on Iranian ports.
- Three Iranian oil tankers and two cargo ships have passed through the Strait of Hormuz.
- Negotiations on Iran's nuclear program and sanctions relief are set to follow.
- Oil prices rose amid market concerns over the deal's details and supply restoration timeline.
US President Donald Trump announced that a memorandum of understanding (MoU) with Iran has been signed, which will fully open the Strait of Hormuz by Friday. This development follows Iran's media reporting that three oil tankers and two cargo ships have passed through the strait after the US lifted its naval blockade.
Details of the MoU remain largely undisclosed, but officials indicate it ends fighting on all fronts, including in Lebanon, and lifts the US naval blockade on Iranian ports. Follow-up talks are scheduled to address Iran’s nuclear program and sanctions relief during a 60-day period after the MoU's official signing in Switzerland. US Vice President JD Vance stated that no tolls would be charged in the waterway during this period, and a senior Iranian official told Reuters that the US had agreed to release $25 billion of Iran’s frozen assets and waive sanctions on oil.
Despite the agreement, concerns persist. Israeli Prime Minister Benjamin Netanyahu's comments suggest Israel may seek to derail the deal, and opposition parties and coalition partners have urged him not to comply. Japan has voiced concern over Israeli attacks on Lebanon, separate from the US-Iran agreement. Iranian union chief Saman Rezaei expressed skepticism that the Strait of Hormuz transit system will ever return to its pre-war condition, citing the need for sustainable peace and rebuilding damaged infrastructure.
Oil prices saw a rebound due to market anxiety over the lack of detailed information regarding the deal and the potential for delays in fully restoring supply flows through the Strait of Hormuz. Australia has pledged to investigate claims of abuse and sexual assault against flotilla activists by Israeli forces.