Key facts
- The US and Iran have electronically signed a preliminary memorandum of understanding (MOU).
- The MOU establishes a 60-day ceasefire between the US and Iran.
- The Strait of Hormuz is to be reopened for transit.
- President Trump announced the Strait of Hormuz is fully reopened.
- Iranian tankers have begun transiting the Strait of Hormuz.
- The deal reportedly includes toll-free transit through the Strait of Hormuz for 60 days.
- Global stock markets rallied on June 15, 2026, following the announcement.
- Brent crude futures fell 4.8% on June 15, 2026.
- Israel states it is not bound by the US-Iran agreement.
- Israel will continue operations against Hezbollah in Lebanon.
- Hezbollah has ceased military operations following the Iran-US deal announcement.
- Details on Iran's nuclear program and sanctions relief are to be negotiated.
The United States and Iran have electronically signed a preliminary memorandum of understanding (MOU) to end hostilities and reopen the Strait of Hormuz, with President Trump and Vice President Vance signing for the US. Iranian President Masoud Pezeshkian called the deal an 'honourable document' if properly implemented. The agreement establishes a 60-day ceasefire and reportedly includes toll-free transit through the Strait of Hormuz for its duration, with negotiations planned for a final peace deal and details on Iran's nuclear program and sanctions relief to be negotiated later in Geneva. President Trump announced the Strait of Hormuz is fully reopened, and Iranian tankers have begun transiting after the US lifted its naval blockade, though shippers remain hesitant due to security concerns and ongoing demining operations. Vice President JD Vance stated no funds would be released to Iran in exchange for signing the deal. Global stock markets rallied on June 15, 2026, with the S&P 500 gaining 1.7%, the Dow Jones Industrial Average rising 0.9%, and the Nasdaq composite surging 3.1%, while Brent crude futures fell 4.8%. Oil prices initially fell sharply but then rebounded as traders awaited details.
Despite the US-Iran agreement, Israel states it is not bound by the deal and will continue operations against Hezbollah in Lebanon, with Israel's defense minister vowing to remain indefinitely in seized territories. Hezbollah has reiterated its right to self-defense and stated it has ceased military operations following the Iran-US deal announcement, contingent on Israeli compliance. Residents in southern Lebanon greet the truce with caution, facing unexploded ordnance and continued Israeli presence. European allies express skepticism about the rapid timeline promised by President Trump, citing practical challenges and differing interpretations. Analysts suggest the deal leaves Gulf states feeling vulnerable to Iranian proxies and missiles, frustrated by an unreliable US ally, and that the agreement fails to address core security concerns. Former President Obama expressed skepticism, predicting any new deal would be similar to the JCPOA.
The US military will maintain its current force levels in the Middle East throughout the 60-day negotiation period. The IMF remains on high alert for global economic fallout, though Managing Director Kristalina Georgieva noted the global economy is weathering the shock. Iran's military spokesperson stated Tehran will maintain and increase its armed forces' readiness and warned of a strong response to any violations of the MOU. The lack of a publicly released text has fueled vastly different interpretations and political battles, with both nations publicly portraying the deal as a significant win.
Details on the nuclear program and sanctions relief are to be negotiated. A formal signing ceremony is planned.
Analysts warn that reopening the Strait of Hormuz to commercial shipping will be complex and time-consuming. Chinese firms sanctioned for Iran-related business may not see immediate relief from existing sanctions.