3 min readJun 18, 2026 11:09 AM IST
First published on: Jun 18, 2026 at 08:53 AM IST
The United States and Iran signed an agreement on Wednesday (Jun 17) to end the war in the Middle East, which had been going on for over three months.
US President Donald Trump formally signed the deal while attending the G7 summit in Evian-les-Bains in France.
The White House said that the deal, which includes the reopening of the Strait of Hormuz, is now in effect.
Bringing the crucial waterway, which is responsible for about a quarter of the world’s oil trade, back to pre-war traffic levels would mark a significant step towards easing months of economic tensions sparked by the US-Israeli strikes in February.
Pakistan Prime Minister Shehbaz Sharif said that Tehran will reopen Hormuz “instantly” and Washington will “immediately” lift the naval blockade.
He said that the memorandum “shall enter into force with immediate effect and as a first step, the Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade”.
What does the deal say?
US naval blockade
One of the points of the 14-point agreement, also known as a Memorandum of Understanding, states that the United States will begin lifting its naval blockade of any other “disturbances or impediments” that it has deployed at Iranian ports.
According to the agreement and the Iranian Ministry of Foreign Affairs, the blockade will fully end within 30 days. During this time, Washington will gradually allow vessels to use Iranian ports, and the number of ships will be proportional to the traffic restored by Tehran in the Strait of Hormuz.
Within 30 days of a comprehensive final agreement being signed, the United States has committed to withdrawing the American forces from the “proximity of Iran”.
Strait of Hormuz
A part of the document emphasises that upon the signing of the MoU, Tehran will make arrangements “using its best efforts” to ensure that commercial vessels can safely transit through the Strait of Hormuz, without any charge.
It notes that the traffic through the crucial waterway will begin moving “immediately”, after technical and military “obstacles” are removed and de-mining operations are conducted.
The deal also highlights that in the longer-term, Iran will work alongside Oman and other Gulf nations to set up a wider agreement on how operational issues can be managed in Hormuz.
Tankers and cargo vessels are seen in the Gulf of Oman, along shipping routes linking the Strait of Hormuz and the Arabian Sea (AP Photo) 
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