The United States and Iran signed a 14-item memorandum of understanding on Thursday to establish a permanent cease-fire and lift a U.S. naval blockade [1].
This agreement seeks to stabilize one of the world's most critical maritime chokepoints and restore the flow of Iranian oil exports to global markets. By addressing the naval blockade and shipping restrictions, the two nations aim to reduce the risk of direct military conflict in the Persian Gulf.
President Donald Trump said the signing took place at the Versailles Palace in France [1]. According to the U.S. statement, the memorandum permits toll-free navigation through the Strait of Hormuz for 60 days [1]. The agreement further specifies that ship traffic should return to normal levels within 30 days [1].
Iranian President Ebrahim Pezeshkian signed the document electronically [1]. The 14-point memorandum focuses on ending hostilities, and reopening the strait for commercial shipping [1].
However, reports regarding the cost of navigation remain contradictory. While the U.S. maintains that passage will be free for 60 days [1], other reports suggest that the reopening will not return to a state of free navigation and that Iran is demanding a service fee [1]. Some reports indicate that Iran has already begun collecting navigation fees from certain commercial vessels [1].
Despite these discrepancies, the memorandum represents a formal attempt to pivot away from years of escalation. The deal explicitly allows for the resumption of Iranian oil exports, which had been hampered by the U.S. blockade [1].
“The United States and Iran signed a 14-item memorandum of understanding”
The agreement attempts to decouple global energy security from the geopolitical rivalry between Washington and Tehran. While the cease-fire and lifting of the blockade provide immediate economic relief, the contradiction regarding transit fees suggests that the Strait of Hormuz remains a point of leverage for Iran. The 60-day window for toll-free passage serves as a fragile probationary period to test whether diplomatic trust can be restored.
