Pakistani Prime Minister Shehbaz Sharif announced on June 13 that the United States and Iran have reached what he called the “final, agreed upon text” of a peace deal. The agreement would extend a ceasefire originally established on April 8, 2026, by an additional 60 days, and, critically, reopen the Strait of Hormuz to maritime traffic.

The Strait handles roughly 20% of global oil transit. Its closure has been one of the most disruptive economic consequences of the conflict that began in late February 2026, when US and Israeli military actions against Iran included mining the waterway.

What’s in the deal

The memorandum of understanding contains several key provisions beyond the ceasefire extension. It includes an immediate or phased reopening of the Strait of Hormuz without tolls, along with the lifting of the US naval blockade on Iranian ports. There’s also language around potential sanctions relief on Iranian oil exports and a framework for future discussions centered on Iran’s nuclear program.

PM Sharif indicated that an electronic signing of the agreement was expected within 24 hours of his announcement. President Trump confirmed the deal is “largely negotiated” and stated that the Strait would open immediately after the signing is finalized. Iranian officials have been somewhat more cautious, advising against firm expectations about exact timing for the reopening.

How we got here

The original ceasefire on April 8 was itself a product of Pakistani and Qatari mediation. This latest deal represents a continuation of that effort. Israeli strikes on Lebanon have continued alongside the negotiations, and lingering uncertainties about the precise terms of the deal persist.

What this means for markets and investors

Oil futures declined on the optimism surrounding the potential agreement, and stock values have risen alongside the negotiations. The Strait of Hormuz carries roughly 20% of global oil, meaning its reopening affects not just crude prices but shipping costs, insurance premiums for tankers, and petrochemical supply chains.

The research indicates no direct digital asset implications tied to the MOU.

The difference between Trump’s assertion that the Strait will open “immediately” and Iran’s more measured language about timing introduces execution risk. Traders betting heavily on an instant normalization of shipping may find themselves exposed if the phased reopening takes longer than anticipated.