The United States and Iran have agreed on a memorandum of understanding aimed at ending their ongoing conflict, a diplomatic breakthrough that sent immediate shockwaves through global markets. Bitcoin climbed roughly 2% to approximately $65,800 following the announcement, while oil futures dropped between 6% and 10%.

The deal, brokered with mediation from Pakistan and Qatar, extends an existing ceasefire and establishes a framework for 60 days of intensive negotiations toward a permanent resolution. The formal signing is expected on June 19, 2026, in Switzerland.

What’s in the deal

Core provisions include a permanent halt to military operations, the reopening of the Strait of Hormuz, and the lifting of the US naval blockade. Phased sanctions relief is also on the table, alongside stipulations concerning Iran’s nuclear program.

The Strait of Hormuz alone handles roughly a fifth of global oil transit, and its closure has been one of the primary pressure points keeping energy markets on edge.

Pakistan’s Prime Minister Shehbaz Sharif announced the agreement on June 14-15, with US envoys Steve Witkoff and Jared Kushner leading the American side of negotiations. Pakistan and Qatar both played escalating mediation roles dating back to early May.

How markets reacted

Bitcoin’s move to around $65,800 represented a two-week high, and more than $150 million in short positions were liquidated across crypto markets as the news broke.

Speculative trading driven by earlier reports of a potential deal had already pushed Bitcoin to near $82,000 back in May. Oil futures declined between 6% and 10%, reflecting how much geopolitical risk premium had been baked into energy prices.