US and Iran Sign Historic Peace Deal: Strait of Hormuz Reopens, Naval Blockade to End Under Landmark Agreement
In a major diplomatic breakthrough aimed at ending more than three months of conflict in the Middle East, the United States and Iran signed a landmark peace agreement on Wednesday, June 17, setting the stage for de-escalation in one of the world’s most volatile regions.
US President Donald Trump formally signed the agreement while attending the Group of Seven (G7) summit in Evian-les-Bains, France.
The White House subsequently announced that the accord had come into immediate effect, describing it as a critical step towards restoring stability and reducing geopolitical tensions that had rattled global markets for months.
At the heart of the agreement is the reopening of the Strait of Hormuz, one of the world’s most strategically important maritime passages through which nearly a quarter of global oil trade passes.
Restoring traffic through the narrow waterway to pre-war levels is expected to significantly ease economic pressures triggered by the conflict and alleviate concerns over global energy supplies that had intensified following the US-Israeli military operations in February.
Pakistan Prime Minister Shehbaz Sharif also welcomed the agreement, stating that Iran would reopen the Strait of Hormuz “instantly” and that the United States would “immediately” begin lifting the naval blockade imposed during the conflict.
Sharif said the Memorandum of Understanding (MoU) clearly stipulates that it shall come into force with immediate effect.
As an initial measure, Iran will promptly restore navigation through the Strait of Hormuz, while the United States will simultaneously begin removing restrictions imposed under the naval blockade.
What Does the Agreement Include?
Gradual End to the US Naval Blockade
One of the key provisions in the 14-point Memorandum of Understanding concerns the phased withdrawal of the US naval blockade and the removal of other restrictions that had been imposed around Iranian ports during the conflict.
According to the terms of the agreement and statements from Iran’s Ministry of Foreign Affairs, the blockade will be completely lifted within 30 days.
During this transition period, Washington will progressively permit commercial vessels to access Iranian ports.
The number of ships allowed to resume operations will correspond to the extent to which Tehran restores maritime traffic through the Strait of Hormuz.
The agreement further states that within 30 days of signing a comprehensive final accord, the United States has committed to withdrawing its military forces from areas in close proximity to Iran, signalling a broader effort to reduce military tensions in the region.
Immediate Restoration of Shipping Through the Strait of Hormuz
Another crucial component of the agreement centres on the Strait of Hormuz itself.
The document states that immediately upon signing the Memorandum of Understanding, Tehran will use its “best efforts” to ensure that commercial vessels can safely and freely navigate the strategic waterway without being subjected to any charges.
The agreement specifies that maritime traffic through the Strait will resume immediately after technical and military obstacles are removed and necessary de-mining operations are completed.
The provision is expected to reassure international shipping companies and energy markets that had been severely disrupted by the prolonged conflict.
Long-Term Regional Cooperation
Beyond the immediate measures, the agreement also outlines a longer-term framework for regional maritime cooperation.
Under the terms of the deal, Iran has agreed to work closely with Oman and other Gulf nations to establish a broader mechanism for managing operational and security issues in the Strait of Hormuz.
The proposed framework aims to create a more stable and predictable environment in one of the world’s most critical energy corridors and reduce the risk of future disruptions that could trigger global economic and geopolitical repercussions.
The signing of the US-Iran peace agreement marks one of the most consequential diplomatic developments in the Middle East in recent years.
While many of the agreement’s provisions will require careful implementation and sustained cooperation, the reopening of the Strait of Hormuz and the planned lifting of the naval blockade represent significant first steps towards restoring regional stability and rebuilding confidence in global energy markets.
