U.S. President Donald Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding on Wednesday, June 18, 2026, to end their war [2, 4].
The agreement aims to stabilize a critical global energy corridor and halt active hostilities between the two nations. Because the Strait of Hormuz is a primary artery for global oil shipments, its reopening is expected to reduce international economic volatility.
The memorandum of understanding entered into force immediately [1]. The deal specifically targets the cessation of the ongoing U.S.–Iran war, and the reopening of the strategically vital Strait of Hormuz [1, 5].
President Trump signed the agreement following the G7 summit. Reports on the method of signing vary—some sources said Trump signed a hard copy at the Palace of Versailles in France [3, 4], while other reports said he signed the memorandum remotely [3].
President Pezeshkian signed the document in Tehran [1, 4]. The coordinated signing marks a shift in diplomatic relations between the two governments, which have been engaged in a prolonged conflict.
The deal comes as a result of efforts to resolve the West Asia crisis. By securing the Strait of Hormuz, both nations intend to restore maritime traffic, and ensure the flow of commerce through the region [1, 4].
“The agreement is intended to end the war between the United States and Iran”
The immediate implementation of this MOU suggests a high level of urgency from both Washington and Tehran to de-escalate military tensions. Reopening the Strait of Hormuz is the most significant immediate outcome, as it removes a primary trigger for global oil price spikes and restores stability to one of the world's most volatile maritime chokepoints.
