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Jun 18, 2026 Major1
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US-Iran Interim Peace Deal Signed; Tehran Plans to Charge Ships Transiting Strait of Hormuz

The US and Iran have signed an interim 60-day peace agreement extending their ceasefire, with both Trump and Pezeshkian formally endorsing the deal. Iran has announced plans to charge ships for transiting the Strait of Hormuz after a toll-free period, a position contrary to Trump's previous opposition to such fees. Global financial markets responded positively, with oil prices declining and Asian stocks remaining steady as investors assessed the agreement's implications for regional stability.





Quick Facts
Who
Donald Trump
What
US and Iran signed interim peace memorandum of understanding
When
Digital signing over the weekend
Where
Palace of Versailles, France
- US and Iran signed interim peace memorandum of understanding
- Agreement extends ceasefire by 60 days
- Iran announced plan to charge ships for Strait of Hormuz transit after toll-free period
- Trump signed physical copy of agreement at Versailles dinner
- Pezeshkian signed agreement in Tehran
The United States and Iran have signed an interim peace agreement that extends a ceasefire by 60 days to allow both sides to negotiate a final truce. US President Donald Trump and Iranian President Masoud Pezeshkian both signed the memorandum of understanding, with Trump initially signing digitally over the weekend alongside Vice President JD Vance, followed by a physical signature on Wednesday while dining with French President Emmanuel Macron at the Palace of Versailles. Iranian state media released images of Pezeshkian holding the signed agreement. The White House had planned a signing ceremony in Switzerland for Friday, but the event's status remains uncertain amid conflicting information from the US, Iran, and mediator Pakistan.
A central point of contention concerns the Strait of Hormuz, a vital waterway through which approximately one-fifth of global oil and liquefied natural gas supplies transit. Iran has declared it will not return to "prewar conditions" and intends to charge ships for passage after an initial 60-day toll-free period. Chief Iranian negotiator Mohammad Bagher Ghalibaf stated on state television that "Iran has the right to sovereignty over the strait of Hormuz and of course we will receive a fee for services." Iranian Foreign Ministry Spokesperson Esmail Baghaei indicated the strait's management would be a responsibility shared between Iran and Oman. Trump previously stated he would not accept tolls on the strategic route, but defended the agreement by arguing that without it the strait "would never have been opened" and a "worldwide depression" would result.
The agreement has been shrouded in secrecy since negotiations began. US officials initially refused to disclose the terms even after confirming the digital signing over the weekend, according to the Associated Press. Washington has not formally released the full text of the agreement, though US officials provided draft language to journalists on condition of anonymity, and Iranian state media released text that largely aligned with US accounts. Trump threatened to resume attacks and kill Iranian officials if Iran fails to honour its commitments under the deal.
Financial markets responded cautiously to the interim agreement. Asian stocks remained steady, with Japan's Nikkei share average rallying to another record high driven by semiconductor and artificial intelligence-related gains. Oil prices declined following the signing, reflecting optimism about the strait potentially reopening. US crude fell 1.25 percent to $75.83 a barrel, while Brent crude dropped 1.4 percent to $78.41 a barrel. Brent crude futures earlier fell below $80, their lowest level since the Iran war began in late February. The International Energy Agency forecast the oil market would move into a significant supply surplus in 2027 following recovery from the strait closure. Market analysts noted that major geopolitical risks persist and will continue to influence investor behaviour.
Why This Matters
This agreement directly impacts global energy security and market stability. Approximately one-fifth of global oil and LNG supplies transit the Strait of Hormuz; any resolution affecting this passage influences energy prices, supply chains, and economic outlooks worldwide. Investors and businesses face immediate implications: lower oil prices and reduced regional conflict risk support economic forecasts, but the unresolved toll dispute and agreement secrecy create ongoing uncertainty. For policymakers and companies with Middle Eastern interests, this deal signals a critical shift in regional dynamics that requires strategic reassessment of geopolitical risk exposure.
Timeline & Sources
Jun 18, 2026
WireTrump signs physical copy at Versailles dinner with Macron; Pezeshkian signs in Tehran