The United States and Iran have agreed on a preliminary peace memorandum of understanding (MoU) aimed at ending months of military tensions and conflict between the two countries. According to the proposal, formal signing of the agreement is expected to take place on June 19 in Geneva, Switzerland, where it may be finalized in the presence of international mediators.
One of the key elements of the proposed agreement is the reopening of the Strait of Hormuz, a strategic maritime route through which a significant portion of global oil and gas shipments pass. Following indications that the waterway could be reopened after disruptions caused by conflict and blockades, global energy markets reportedly reacted positively. The U.S. side has indicated that the process of lifting naval restrictions could begin once the agreement is signed, allowing maritime trade to resume normal operations.
In a public statement on the agreement, the U.S. President said it was time to restore normal global trade and energy supplies. He indicated that international shipping should continue unhindered and that oil supplies should flow without disruption. Market participants interpreted the remarks as a signal of potential easing of restrictions and a more conciliatory diplomatic approach.
Iran has outlined several conditions before advancing the agreement. Tehran has stated that the United States must first implement its commitments, including the release of billions of dollars in Iranian funds held abroad. Iran has also called for an end to military operations and the lifting of maritime blockades. According to Iranian officials, the next phase of negotiations, expected to last 60 days, will proceed only after these initial measures are implemented.
Media reports indicate that the draft peace agreement is based on approximately 14 points, including a ceasefire, restoration of maritime trade, sanctions relief, and discussions related to the nuclear program. Under the proposed framework, Iran would reaffirm its commitment not to develop nuclear weapons, while the United States would consider gradually easing sanctions and reducing its regional military presence. However, final agreement on several issues has yet to be reached.
Due to security and political considerations, the agreement may be signed through digital means. U.S. officials have indicated that a digital signature system could be used instead of a traditional face-to-face signing. Preparations are also underway for a formal ceremony in Geneva that could include senior representatives. Discussions are reportedly ongoing regarding the participation of the U.S. Vice President or the President.
Several countries and international organizations have welcomed the prospective agreement. The United Nations, the United Kingdom, France, Turkey, Qatar, and other countries have described it as a positive step toward regional stability. The role of countries involved in mediation efforts has also been acknowledged. Members of the international community have stated that implementation of the agreement could help reduce longstanding tensions in the Middle East.
Following reports of the agreement, global equity markets recorded gains while crude oil prices declined. According to experts, reopening the Strait of Hormuz could stabilize energy supplies and reduce uncertainty in international markets. Improved conditions for global trade and investment are also being anticipated.
Despite the announcement, several issues remain unresolved. Matters relating to Iran’s nuclear program, the process for sanctions relief, and security guarantees have not yet been fully agreed upon. Experts have stated that the implementation of the agreement and the ability of both countries to maintain mutual trust will be critical to its future progress.
