Deal Confirmed for June 19

Washington and Tehran have finalised a peace agreement, bringing an end to months of active hostilities. United States President Donald Trump confirmed the development on social media, announcing the immediate lifting of the US naval blockade on the Strait of Hormuz.

In a characteristically direct post, Trump wrote, "Ships of the world, start your engines. Let the oil flow." While the president’s announcement was light on specific clauses, he confirmed the deal will be formally signed on Friday, June 19. Iran’s government separately issued a statement acknowledging the conclusion of what it described as "lengthy and difficult negotiations" with the US.

Oil Prices Tumble More Than 4%

Markets reacted swiftly. Oil prices plunged over four per cent in early Asian trading on Monday as the prospect of a free-flowing Hormuz eased supply concerns. West Texas Intermediate was down sharply at $81.15 a barrel in Tokyo. The strait, a critical chokepoint for global crude shipments, had been effectively sealed by the US Navy for weeks, triggering volatility across energy markets.

The dip in prices was mirrored by a rally in equities. Japan’s Nikkei 225 surged more than five per cent, while South Korea’s Kospi jumped nearly six per cent. Investors appeared to be pricing in a rapid stabilisation of regional trade routes.

International Reactions Pour In

The news drew a cautious but largely positive response from world capitals. UN Secretary-General Antonio Guterres called the development a "critical step," while Pakistan’s Prime Minister Shehbaz Sharif confirmed the agreement followed extensive back-channel talks. Pakistan’s Foreign Minister Ishaq Dar described it as a "significant breakthrough."

However, the silence from Israel was conspicuous. According to The Times of Israel, officials in Tel Aviv are deeply concerned. Israel, which had been a key partner in the initial stages of the conflict, was reportedly excluded from the final negotiations. A US official, speaking on condition of anonymity, suggested that several provisions in the draft do not align with the war aims originally set out by Washington and its ally.

What’s in the 14-Point MoU?

While the White House has not formally released the text, Iranian state media outlet Mehr News published details of a 14-point memorandum of understanding. According to the report, the deal mandates an immediate cessation of hostilities "on all fronts, including Lebanon." The US naval blockade will be lifted, and maritime trade through the strait is to be restored within 30 days.

Crucially, the agreement includes a mechanism for the release of frozen Iranian assets. Mehr reported that $12 billion will be released before negotiations even begin, with a total of $24 billion to be freed during a subsequent 60-day negotiation period. Tehran has also reiterated its commitment not to develop nuclear weapons, though further talks are planned regarding its 60 per cent enriched uranium stockpile.

Digital Signing and Next Steps

Officials are preparing for a hybrid signing ceremony. CNN, citing sources, reported that the memorandum will be signed digitally to avoid the "security and logistical challenges" of a face-to-face meeting. However, US Vice President JD Vance told Fox News that a physical ceremony in Geneva remains possible. Vance said he intends to be present, adding that President Trump might also attend.

The coming 60 days will be critical. The MoU triggers a new phase of negotiations focused on implementation, sanctions relief, and post-war reconstruction. For now, the guns have fallen silent. As Iran’s military noted in a statement on Monday, they believe they have "humiliated" their adversaries. Washington sees it as a victory for deterrence. On the ground in the Gulf, tankers are preparing to sail again.