The United States and Iran digitally signed a memorandum of understanding on June 17, 2026 laying out a 14-point framework to end the war that began on February 28 and to reopen the Strait of Hormuz to commercial shipping. President Trump signed the document at dinner with French President Macron at the Palace of Versailles. A formal signing ceremony is scheduled for June 19 at the Bürgenstock resort in Switzerland.

The deal, if it holds, would end the shortest major US military conflict since the Gulf War. The 60-day ceasefire extension it contains gives negotiators a window to convert the memorandum into a final agreement, but significant unresolved issues remain, particularly on Iran’s stockpile of enriched uranium.

What the Memorandum of Understanding Contains

The 14-point MOU released by the Trump administration on June 17 covers six main areas. According to NPR and NBC News, the key provisions are:

• Military operations: Both sides declare intent for an immediate and permanent termination of all military operations in the US-Israeli conflict with Iran that began February 28.
• Strait of Hormuz: Iran will use best efforts to ensure free passage of commercial vessels, with no charges for 60 days. The strait had been partially blocked since early March.
• Naval blockade: The US will begin removing its naval blockade immediately and will fully end it within 30 days if a final deal is reached.
• Reconstruction fund: The US will work with regional partners to create a fund of up to $300 billion for Iranian reconstruction and economic development.
• Nuclear commitment: Iran commits not to procure or develop nuclear weapons. Both sides agree to develop a plan for Iran’s existing enriched uranium stockpile.
• Sanctions relief: The US will lift sanctions against Iran as part of reaching a final deal, not immediately.

Timeline of the US-Iran Conflict

Date	Event
Feb 28, 2026	US-Israeli military operations against Iran begin
Mid-March 2026	Iran partially closes Strait of Hormuz, oil prices spike
June 14-15, 2026	US and Iran announce initial ceasefire deal – Strait begins reopening
June 17, 2026	MOU digitally signed; Trump signs at Palace of Versailles with Macron
June 19, 2026	Formal signing ceremony at Bürgenstock, Switzerland
60 days from signing	Deadline to convert MOU into final peace agreement

The Strait of Hormuz: Why It Matters

The Strait of Hormuz is the world’s most critical oil and gas chokepoint. Approximately 21 million barrels of oil per day transit the strait, representing roughly 21 percent of global oil trade. When Iran partially closed it in March 2026, oil prices surged and global shipping costs spiked for all commodities that were rerouted around the Cape of Good Hope.

The MOU’s provision that commercial vessels face “no charge” for 60 days addresses Iran’s previous demands for transit fees as a condition of reopening. The immediate partial reopening following the June 15 announcement contributed to a sharp drop in oil prices that markets celebrated as relief after months of elevated energy costs.

What Remains Unresolved

The most difficult outstanding issue is Iran’s enriched uranium stockpile. Iran had accumulated significant quantities of uranium enriched to 60 percent and 90 percent purity before the conflict began. The MOU commits both sides to developing a plan for the stockpile without specifying what that plan will be.

Israel’s position is also unresolved. Israel conducted joint operations with the US in the February-June conflict but is not a signatory to the MOU. Israeli officials have been publicly skeptical about the terms, particularly the provision for a $300 billion reconstruction fund for Iran, which they view as economically rehabilitating a hostile neighbor.

The 60-day window to finalize a deal is tight. The original Iran nuclear deal (JCPOA) took over two years to negotiate from the framework stage. Optimists point to the ceasefire holding as evidence of genuine political will on both sides; skeptics note that the most contentious issues are front-loaded into the final agreement negotiations.

Global Economic Impact

Oil markets responded immediately to the June 15 ceasefire announcement. Brent crude fell from $94 per barrel, where it had been trading during peak conflict, toward $72 as the Hormuz reopening took effect. A full and permanent deal would likely push prices further toward the $65-70 range that prevailed before the conflict began.

Shipping insurance costs, which had risen to historic highs for Gulf routes, began to fall within hours of the announcement. Container shipping lines that had added weeks to transit times through Cape of Good Hope rerouting began signaling a return to Hormuz routes.

Frequently Asked Questions

What did the US and Iran agree to in June 2026?

The US and Iran signed a 14-point memorandum of understanding on June 17, 2026 covering: an intent to permanently end military operations, reopening the Strait of Hormuz to commercial shipping with no transit fees for 60 days, removal of the US naval blockade, a $300 billion reconstruction fund for Iran, Iran’s commitment not to develop nuclear weapons, and US sanctions relief as part of a final deal. The MOU extends the ceasefire 60 days to allow final negotiations.

Is the Strait of Hormuz open again?

Partially, as of mid-June 2026. Iran began allowing commercial vessels to transit following the June 14-15 ceasefire announcement. The MOU commits Iran to best-efforts free passage with no charges for 60 days. Full reopening depends on the final deal being reached within that 60-day window.

When did the US-Iran war start?

US-Israeli military operations against Iran began on February 28, 2026. The conflict lasted approximately 108 days before the ceasefire announced June 14-15, 2026. The MOU signed June 17 is the formal step toward a permanent end to hostilities, with a final agreement targeted within 60 days.