The US and Iran have signed a Memorandum of Understanding aimed at de-escalating tensions and reopening the Strait of Hormuz to global shipping traffic. The deal, signed electronically between June 12-15, was executed by President Donald Trump, Vice President JD Vance, and Iranian parliament speaker Mohammad Bagher Qalibaf.

Vice President Vance confirmed that the memorandum outlines general principles and explicitly links any benefits Iran receives to verifiable compliance with the agreement’s terms. No cash was released to Iran upon signing. No frozen funds were unlocked. Instead, 65% of sanctions relief is conditional on future compliance, a mechanism designed to keep leverage firmly on the American side of the table.

The Strait of Hormuz, which handles about 20% of global oil trade, will reopen to shipping traffic immediately. Traffic increases will be gradual, not instantaneous.

Iran has committed to abstaining from developing nuclear weapons. The specifics of how that commitment gets monitored and enforced are not part of this initial memorandum. Those details will be hashed out during a 60-day negotiation window that begins after the signing.

A formal signing ceremony is planned for June 20, likely in Switzerland.

Why the structure matters more than the headline

The 2015 Iran nuclear deal, formally known as the JCPOA, was criticized by opponents for providing Iran with too much economic relief before sufficient verification of nuclear rollbacks. That deal collapsed after the Trump administration withdrew from it in 2018. In early 2025, the second Trump administration adopted a policy of maximum pressure, implementing stringent sanctions and military posturing to impede Iran’s nuclear ambitions.

This new MOU makes 65% of sanctions relief conditional, retaining significant economic leverage throughout the negotiation and implementation phases. The digital signing format, with all three signatories executing the document between June 12-15 rather than at a single in-person event, indicates the agreement was finalized before the June 20 public ceremony in Switzerland.

What this means for markets and investors

The Strait of Hormuz handles about 20% of global oil trade. A reopened and gradually normalizing strait could increase global oil supply, putting downward pressure on crude prices. The gradual nature of the traffic increase gives markets time to adjust rather than forcing a sudden repricing.

For crypto markets, shifts in sanctions policy against Iran have historically influenced local crypto adoption and trading activity within the country. If sanctions relief actually materializes through this compliance framework, the urgency driving Iranian crypto adoption could moderate.

The conditional structure introduces uncertainty over the coming months. If Iran meets its obligations, sanctions relief rolls out. If compliance stalls or the 60-day negotiations break down, the deal framework becomes void. Investors in energy, commodities, and Middle Eastern equities should watch the 60-day negotiation window closely.