US and Iran Agree Ceasefire Extension with Sanctions Relief and Strait of Hormuz Reopening
The United States and Iran have reached a draft agreement to extend their ceasefire and reopen the Strait of Hormuz. The deal will take the form of a memorandum of understanding (MOU), to be signed in Switzerland on 19 June 2026, with Pakistan and Qatar having served as mediators. A comprehensive final agreement is to be negotiated over the following 60 days.
The full text of the MOU has not been made public, but according to reporting by Reuters, the draft includes the following commitments:
The Financial Times has additionally reported that Iran will not charge tolls for passage through the Strait of Hormuz for 60 days while the final agreement is being confirmed, and that all uranium will be diluted on site under International Atomic Energy Agency supervision as a minimum commitment.
The full text of the MOU has not been made public, but according to reporting by Reuters, the draft includes the following commitments:
- Iran will immediately reopen the Strait of Hormuz
- The US will impose no new sanctions on Iran pending conclusion of a final deal
- The US and UN will lift all sanctions on Iran according to an agreed timetable
- The US will waive oil sanctions on Iran by granting licences permitting Iran to buy and sell oil on international markets
- The US will release US$25 billion in frozen Iranian assets through cash transfers, regional financial cooperation, and credit lines
- Iran's nuclear programme will be addressed in the final agreement
The Financial Times has additionally reported that Iran will not charge tolls for passage through the Strait of Hormuz for 60 days while the final agreement is being confirmed, and that all uranium will be diluted on site under International Atomic Energy Agency supervision as a minimum commitment.
- The UK, France, Germany, and Italy have issued a joint statement indicating their readiness to lift relevant sanctions on Iran in response to clear and verifiable steps on its nuclear programme. UN sanctions on Iran were reinstated in October 2025 after the UK, France, and Germany triggered the snapback mechanism under the 2015 nuclear deal.
