Trump: US and Iran Finalize 60-Day Deal to Reopen Hormuz

President Donald Trump announced a 60-day memorandum of understanding with Iran that aims to reopen the Strait of Hormuz, freeze fighting and allow temporary oil sales. The signing ceremony is scheduled for June 19 in Switzerland.

U.S. officials described the arrangement as a nonbinding framework that can be extended by mutual consent. Under the memorandum, Iran will clear naval mines it laid in the strait and remove obstacles to shipping while the United States phases out its blockade of Iranian ports.

The draft authorizes temporary waivers allowing some Iranian oil and petrochemical sales during the 60-day window. Frozen Iranian funds would remain blocked until negotiators reach a fully verified settlement.

Mr. Trump described the principle as “relief for performance,” saying Tehran would receive staged sanctions relief in return for specified on-the-ground steps in the memorandum.

The text includes a pledge from Iran not to pursue nuclear weapons but postpones technical limits on uranium enrichment and the removal of stockpiles to follow-up talks after the 60-day period. Mr. Trump has maintained the pact allows no enrichment. Iranian Foreign Minister Abbas Araghchi countered, “Enrichment in Iran, however, will continue with or without a deal.”

Ballistic missiles and Iran’s regional proxy networks are not addressed in detail in the draft, leaving those issues for later negotiations. Some U.S. officials and other observers say the package provides only a temporary pause rather than a final resolution because permanent limits on enrichment, missiles and proxy activity are not part of the initial arrangement.

Practical obstacles could delay a full reopening. The Pentagon warned that clearing all mines from the Strait of Hormuz could take up to six months. Disputes inside Tehran over sequencing and the pace of sanctions relief have also affected the signing timetable.

Markets moved after the announcement. Traders priced in lower immediate geopolitical risk, which supported gains in risk assets and contributed to a short-term uptick in Bitcoin, while oil markets monitored how quickly Iranian crude could re-enter global supply under the temporary waivers.

The memorandum echoes elements of the 2015 nuclear agreement from which the United States withdrew in 2018. The June 19 ceremony will test whether both sides maintain the ceasefire and follow the phased steps before negotiators take up the more technical nuclear and military issues.