US and Iran Sign Deal to End Conflict, Reopen Strait of Hormuz for 60 Days

June 18, 2026
By Mintesinot Nigussie

The United States and Iran have signed a memorandum of understanding aimed at halting their conflict and restoring access through the Strait of Hormuz, a key global energy shipping route.

The agreement, confirmed by the White House and Iranian state media, includes a commitment by both sides to negotiate a final settlement within 60 days. During that period, the strait will remain open without tolls, although the document does not rule out future charges.

A senior US official said Washington does not expect tolls to be introduced after the temporary arrangement, as the agreement seeks to maintain stability around one of the world’s most important oil transit routes.

The deal also outlines a proposed US$300 billion reconstruction fund for Iran, though US officials said the arrangement does not mean Washington will provide direct financial support.

Nuclear issues remain central to the negotiations, with the agreement reaffirming Iran’s commitment not to develop or acquire nuclear weapons. However, key details surrounding Tehran’s nuclear programme have been left for discussions over the next two months.

US President Donald Trump, speaking at the G7 summit in France as the agreement was signed, paired the diplomatic breakthrough with a warning that military action could return if Iran breaches its commitments. "We're going to bomb the hell out of them if they violate the agreement," Trump said, while expressing hope that Tehran would uphold the deal.

Trump also said Iran should be able to maintain a conventional missile capability, a shift from earlier statements in which he had threatened to target the country’s ballistic missile programme.

The US president said he expected the talks to lead to a longer-term agreement, reduce tensions in the Middle East and help lower oil prices. He described Iranians as "smart people" as negotiators work toward a permanent truce.

Source: FSX Business News