A 14-point memorandum has reopened the Strait of Hormuz and eased pressure on global energy markets, while leaving core disputes over Iran’s nuclear programme and sanctions relief unresolved.
DUBAI/WASHINGTON, June 18, 2026 — The United States and Iran have agreed to a 14-point peace memorandum that halts direct hostilities and opens a 60-day negotiating process covering Iran’s nuclear programme, sanctions relief, energy exports and regional security arrangements.
The agreement, signed by U.S. President Donald Trump and Iranian President Masoud Pezeshkian, immediately eased concerns over disruptions to global energy supplies. Brent crude fell nearly 3% to $78.02 per barrel following the announcement as investors responded to the reopening of the Strait of Hormuz, one of the world’s most important energy shipping routes.
According to Reuters reporting on the draft agreement, Iran agreed to facilitate safe commercial navigation through the Strait of Hormuz, while the United States committed to begin a phased process linked to sanctions relief and future compliance measures.
The strategic importance of the waterway extends far beyond the region. Roughly one-fifth of global oil and liquefied natural gas shipments pass through the Strait of Hormuz, making any disruption a major concern for governments, energy markets and shipping companies worldwide.
Brent crude settled at $78.02 per barrel after the signing, while U.S. West Texas Intermediate crude fell to $74.57, according to Reuters market data. Global equity markets also advanced as investors priced in reduced risks to energy supplies and international trade.
Under the memorandum, Iran reaffirmed its commitment not to develop nuclear weapons and agreed to continue discussions involving oversight by the International Atomic Energy Agency. Draft documents reviewed by Reuters indicate that several critical issues remain unresolved, including future uranium enrichment levels, stockpile limits, verification procedures and inspection mechanisms.
Those unresolved issues mirror many of the disputes that undermined previous diplomatic efforts. The 2015 Joint Comprehensive Plan of Action imposed restrictions on Iran’s nuclear activities in exchange for sanctions relief. The United States withdrew from the agreement in 2018, leading to renewed sanctions, reduced compliance commitments and escalating regional tensions.
Former diplomats and non-proliferation experts have repeatedly identified verification and enforcement mechanisms as among the most difficult aspects of any long-term U.S.-Iran agreement. The current memorandum postpones many of those negotiations until after hostilities have ceased.
Senior U.S. officials told Reuters that Iran could be permitted to expand oil exports under provisions tied to implementation of the agreement. The Wall Street Journal reported that a normalized trading environment could eventually allow Iran to generate more than $60 billion annually from oil exports.
Analysts cited by the newspaper estimated that increasing production by approximately one million barrels per day would require substantial investment, infrastructure upgrades and access to foreign technology. Years of sanctions have constrained development across parts of Iran’s energy sector.
According to the U.S.-China Economic and Security Review Commission, China currently purchases roughly 90% of Iran’s exported oil and remains Tehran’s largest trading partner. Broader sanctions relief could alter existing trade flows and reshape commercial relationships that developed during years of Western restrictions.
Israel was not a participant in the negotiations, according to Reuters reporting. The memorandum also leaves unresolved several regional security disputes involving Iran-backed armed groups, missile programmes and broader maritime security concerns that continue to shape relations between Tehran, Israel and Gulf Arab states.
Iranian officials have described the agreement as creating pathways for oil-sanctions waivers, access to frozen assets and broader economic normalization. U.S. officials, however, have emphasized that much of the proposed relief remains conditional and tied to future compliance benchmarks. The precise sequencing of obligations has not yet been publicly disclosed.
Commercial shipping routes are reopening, oil prices have retreated from wartime highs and direct military confrontation between the United States and Iran has paused. Whether the ceasefire evolves into a broader settlement will depend on negotiations scheduled over the next 60 days.
Negotiators are expected to meet in Switzerland under the framework established by the memorandum, while governments, investors, energy companies and regional allies closely monitor discussions over nuclear oversight, sanctions relief and security arrangements that remain unresolved despite the ceasefire.
Sources: Reuters reporting, The Wall Street Journal, U.S.-China Economic and Security Review Commission, International Atomic Energy Agency materials and official government statements.
