Trump-Iran Deal Focuses on Strait of Hormuz, Sanctions Relief
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Trump-Iran Deal Focuses on Strait of Hormuz, Sanctions Relief
- A recent preliminary memorandum of understanding (MOU) between the United States and Iran focuses on reopening the Strait of Hormuz and provides for a phased process of sanctions relief for Iran.
- Signed on June 17, 2026, by President Trump and Iranian counterpart Masoud Pezeshkian, the MOU also addresses Iran's enriched uranium stockpile.
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A preliminary memorandum of understanding (MOU) has been signed between the United States and Iran on June 17, 2026, aiming to de-escalate a 110-day conflict. The agreement, signed by President Trump and Iranian President Masoud Pezeshkian, outlines a pathway for Iran to potentially access billions of dollars in frozen assets and includes a commitment from Iran to discuss diluting its highly enriched uranium stockpile under the supervision of the UN’s International Atomic Energy Agency (IAEA). This marks a significant development after a period where Iran had reportedly refused to ship its uranium out of the country.
A key aspect of the MOU is the reopening of the Strait of Hormuz, a vital international shipping lane. Iran is required to ensure toll-free passage for commercial vessels for at least 60 days, with full restoration of traffic within 30 days. However, Iran’s chief negotiator, Mohammad Bagher Ghalibaf, stated that Tehran intends to charge ships for using the strait after the initial 60-day period, asserting Iran’s right to sovereignty.
In return for these concessions, the U.S. has agreed to issue waivers for the export of Iranian crude oil, petroleum products, and associated services, including banking and transportation. This sanctions relief is seen as an extraordinary financial lifeline for Iran, which has been under severe economic pressure due to various U.S. sanctions reinstated and expanded since November 2018, following the U.S. withdrawal from the Joint Comprehensive Plan of Action (JCPOA) in May 2018. The economic impacts of these sanctions on Iran have been substantial, leading to a significant contraction in real GDP per capita and a decline in the middle class.
The MOU sets a 60-day period for both sides to negotiate a comprehensive final agreement, with the possibility of extension by mutual consent. Both leaders have indicated a willingness to return to the original JCPOA, but disagree on the specific steps.