Key facts
- The US and Iran have electronically signed a preliminary deal.
- The deal aims to end their 108-day conflict.
- The agreement includes a preliminary ceasefire.
- The deal is intended to reopen the Strait of Hormuz.
- Negotiations to finalize the deal are set for Friday in Geneva, Switzerland.
- The conflict has killed at least 7,000 people.
- Iran claims the US will grant access to frozen funds.
- Vice President JD Vance states no funds will be released to Iran.
- The US military will maintain current force levels in the Middle East during negotiations.
- Oil prices rebounded after an initial selloff following the announcement.
The United States and Iran have electronically signed a preliminary agreement to end their 108-day conflict and reopen the vital Strait of Hormuz. President Trump announced the deal, which also addresses Iran's nuclear program and includes a preliminary ceasefire. Formal signing is scheduled for Friday in Geneva, Switzerland, with negotiations to finalize the deal and address complex issues to follow. The agreement, described by Iranian President Masoud Pezeshkian as a potential "document of pride" for Iran, is expected to boost regional trade, lower costs, and ease energy prices.
Details of the agreement remain scarce, but it is understood to include a preliminary ceasefire that aims to end a conflict that has killed at least 7,000 people. Iran claims the U.S. will grant access to its frozen funds, though Vice President JD Vance stated that no funds would be released to Iran in exchange for signing the deal. The U.S. military will maintain its current force levels in the Middle East throughout the 60-day negotiation period.
Former President Obama expressed skepticism about the new deal, predicting it would be similar to the Joint Comprehensive Plan of Action (JCPOA) negotiated by his administration, while hoping for an end to the conflict. Russian Foreign Minister Sergey Lavrov expressed hope that the memorandum would be signed this week, and Iran's Foreign Minister indicated a meeting between negotiating team heads is probable on Friday in Switzerland.
Oil prices edged higher following the announcement after an initial sharp selloff, which had sent prices down nearly 5% and equities surging. The U.S. military will keep its current force levels in the Middle East throughout the 60-day negotiation period with Iran. The U.S. and Iran have electronically signed a preliminary deal to reopen the Strait of Hormuz and ensure Iran does not develop nuclear weapons. President Trump and Vice President Vance signed for the U.S., with Iran's top negotiator expected to attend the formal signing in Switzerland. The agreement is set to be signed on June 19, 2026, paving the way for the reopening of the Strait of Hormuz.
Iranian media reported that three oil tankers and two other ships passed through a U.S. naval blockade days before the ceasefire deal signing. The deal is the first step in negotiations that will also address Iran's nuclear program. An interim peace agreement with Iran is scheduled for signing, deferring complex issues to future negotiations.