U.S. and Iran Reach 60-Day Truce to Reopen Strait of Hormuz

President Donald Trump announced the United States and Iran have agreed to a 60-day memorandum of understanding that will be formalized at a signing ceremony on June 19 in Switzerland. The document is intended to freeze fighting and reopen the Strait of Hormuz.

U.S. officials described the arrangement as a non-binding, 60-day memorandum that can be extended by mutual consent. Under the draft, Iran has agreed to remove naval mines it placed in the Strait. The United States will lift its blockade on Iranian ports in phases. Temporary waivers will allow Iran to resume some oil exports during the 60-day period while frozen Iranian funds remain inaccessible until negotiators reach and verify a final agreement. Trump characterized the tradeoff as “relief for performance.”

The agreement postpones detailed limits on Iran’s nuclear program. The draft reportedly includes a pledge by Iran not to pursue nuclear weapons but leaves concrete limits on uranium enrichment and stockpile reductions to follow-on talks during the 60-day window. The U.S. administration says the framework permits no enrichment; Iranian Foreign Minister Abbas Araghchi warned, “Enrichment in Iran, however, will continue with or without a deal.”

Ballistic missile programs and Iran’s regional proxy networks receive limited attention in the initial text.

Practical and political obstacles remain. Tehran has pushed back against the proposed schedule, creating disagreement over the June 19 signing date. U.S. defense officials have said that physically clearing mines from the Strait of Hormuz could take up to six months, which would delay a full return to pre-conflict shipping patterns even if the truce holds.

Opponents of the memorandum have said it provides a temporary pause rather than a permanent settlement because it leaves permanent enrichment caps, missile limits and regional behavior to later negotiations.

Markets moved after the announcement. Some investors treated a reduced near-term risk of open conflict as supportive for risk assets, and the short-term waivers for oil exports added supply considerations to energy markets during the 60-day window.

The June 19 ceremony will be the first concrete test of whether the truce can be maintained. Negotiators will face the task of converting the temporary suspension of hostilities and phased relief into a final, verifiable accord that addresses enrichment limits, weapons programs and regional conduct.