US-Iran MOU Signed: Hormuz Reopens, Nuclear Talks Framework Set

President Donald Trump signed the US-Iran Memorandum of Understanding on Wednesday, June 17, reportedly during a dinner with French President Emmanuel Macron. Iran's Foreign Ministry confirmed the agreement was also signed electronically by its side. The 14-point 'Islamabad Memorandum' extends the ceasefire for 60 days, mandates the full reopening of the Strait of Hormuz with no shipping charges for the initial 60-day period, and requires Iran to dilute its enriched uranium stockpiles in exchange for large-scale economic relief. The text was publicly released by a senior US official in a press call.

The deal represents the formal conclusion of a war that had battered the global economy and sent oil prices soaring. However, significant tensions remain: Iran's chief negotiator called the MOU a 'failure' for Washington, and Tehran has indicated it intends to impose Hormuz shipping fees after the 60-day free-passage window closes. Trump, speaking at the G7, claimed additional military strikes would have caused a global economic catastrophe, and controversially said it is 'okay' for Iran to retain some ballistic missiles — a notable concession. Talks scheduled for Friday in Switzerland remain unconfirmed, according to Iranian spokesman Esmaeil Baghaei.

Major shipping firms such as Maersk are expected to be cautious about resuming full normal operations through the Strait in the near term, citing uncertainty about the deal's durability and residual security risks. The next critical milestones are the first formal nuclear negotiating session and whether Iran begins the agreed uranium dilution process within the coming weeks. The Federal Reserve, meeting under its new chair Kevin Warsh, held rates steady but flagged possible hikes later this year, partly citing inflation generated by the Middle East conflict — underscoring how much the deal's stability matters to the broader global economy.

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