US-Iran Sign Deal to End War, Reopen Strait of Hormuz

The United States and Iran have signed an interim peace deal aimed at ending their months-long war and reopening the Strait of Hormuz to commercial shipping. The memorandum of understanding (MOU), signed by U.S. President Donald Trump and Iranian President Masoud Pezeshkian on June 16, extends a ceasefire for 60 days and includes provisions for nuclear negotiations.

Under the agreement, Iran will allow safe passage of commercial ships through the Strait of Hormuz without tolls for 60 days. Tehran will then engage in dialogue with Oman and other Gulf states to define future administration and maritime services in the strait. The U.S., meanwhile, has begun removing its naval blockade of the Strait of Hormuz, with full removal expected within 30 days.

The deal comes after Iran effectively choked off the Strait of Hormuz with threats of missile and drone strikes amid the war, stranding a large number of vessels, including two dozen South Korea-linked ships. The Joint Maritime Information Center downgraded the threat level for ships crossing Hormuz from 'severe' to 'substantial,' although shippers still face a strong possibility of attack.

According to Reuters and Sky News, three Saudi-flagged supertankers carrying 6 million barrels of crude sailed through the Strait of Hormuz on June 18, hours after Trump signed the deal. Benchmark Brent crude futures prices fell by 2% to below $78 a barrel on that day, the lowest since the shooting began.

The U.S.-Iranian memorandum starts a 60-day negotiation period to reach a final settlement to the war, which Trump launched in February alongside Israeli Prime Minister Benjamin Netanyahu. The agreement includes 14 points, including 'immediate and permanent termination of military operations on all fronts, including in Lebanon,' as reported by Sky News.

South Korea's foreign ministry spokesperson Park Il emphasized that the government will prioritize the safety of its vessels and sailors while working to ensure smooth resumption of shipping. According to UPI, South Korea has begun consultations with the U.S., Iran, and other relevant countries regarding maritime transit through the Strait of Hormuz following the peace deal.

Iran's Supreme Leader Ayatollah Mojtaba Khamenei initially disagreed with the memorandum but ultimately approved it after receiving assurances from Iran's leadership that the country’s interests would be protected. Khamenei warned that Tehran would not accept additional demands from Washington, stating that if the American side wants to be greedy, they will not accept it.

The conflict cost the lives of 13 U.S. service members and more than 3,300 Iranians according to state media. Another 3,826 have been killed in Lebanon, nearly 60 in Israel and dozens across Gulf states, according to authorities in those countries.

President Donald Trump asserted that the deal reached with Iran amounts to unconditional surrender by Tehran in an interview with Axios. Trump said he negotiated the agreement to prevent the conflict from triggering a global economic depression.