On June 15, Trump announced that the US and Iran had reached a memorandum of understanding that extends an existing ceasefire for 60 days, reopens the Strait of Hormuz, lifts the US naval blockade, and kicks off further discussions about Iran’s nuclear program. The formal signing is scheduled for June 19 in Switzerland, with Pakistan and Qatar serving as facilitators.

From airstrikes to handshakes

Back in February 2026, US and Israeli strikes targeted Iranian facilities, prompting Tehran to close the Strait of Hormuz in retaliation. That waterway handles roughly a fifth of the world’s oil supply. Trump responded with escalating threats, including potential strikes on Iranian infrastructure. Oil prices spiked.

Trump’s Truth Social post framed the MoU as a diplomatic win, though he added a caveat: military action remains on the table if nuclear issues aren’t resolved during the 60-day negotiation window. The deal doesn’t lift sanctions. It doesn’t settle the nuclear question.

Markets move on the exhale

Bitcoin responded by briefly topping $67,000 after the announcement. Crude oil, meanwhile, fell approximately 5% to around $80 per barrel. That’s a notable decline from the highs seen in March 2026, when the Strait of Hormuz closure had energy traders reacting sharply. The reopening of the strait and the lifting of the naval blockade released the pressure valve on global oil supply fears.

The 60-day negotiation window creates a defined timeline that markets will watch closely. The June 19 signing in Switzerland will be the next concrete milestone. The nuclear question is still unresolved, sanctions remain in place, and Trump himself acknowledged the possibility of reverting to military pressure.