The United States and Iran have reached a peace framework to end their current conflict and reopen the Strait of Hormuz.
The agreement is expected to stabilize global energy markets and resolve a volatile military standoff that has disrupted international shipping and spiked crude prices.
President Donald Trump announced the memorandum of understanding on Sunday, June 15, 2026. The deal aims to halt the U.S. blockade of Iran and restore maritime access to one of the world's most critical oil transit chokepoints. Pakistani Prime Minister Shehbaz Sharif served as the mediator to facilitate the negotiations.
"Let the oil flow," Trump said.
The framework concludes a period of war that lasted 108 days [1]. Under the terms of the agreement, the U.S. will lift its blockade on Iranian oil, allowing the nation to resume exports. This move is intended to lower global energy prices by ensuring the steady movement of petroleum through the Strait of Hormuz.
"We will reopen the Strait of Hormuz," Trump said.
Official representatives from both nations are scheduled to meet in Switzerland to formally sign the memorandum on Friday, June 21, 2026 [2]. The signing ceremony will finalize the diplomatic transition from active hostilities to a structured peace framework.
Market reactions were immediate following the announcement. Asian stocks rose and crude oil prices tumbled as investors anticipated the return of Iranian oil to the global market. The deal marks a significant shift in U.S. foreign policy toward Iran, prioritizing the restoration of energy flow over the previous blockade strategy.
“"Let the oil flow,"”
The agreement signals a pivot toward economic stabilization in the Middle East by removing a primary source of global energy volatility. By utilizing Pakistan as a mediator and Switzerland as a neutral ground for signing, the two powers are attempting to create a diplomatic buffer to prevent a recurrence of the 108-day conflict.
