President Donald Trump and Iranian President Masoud Pezeshkian have signed an interim deal to end the war, with the agreement officially taking effect. The deal, described as a memorandum of understanding, was previously signed digitally on June 14 by Vice-President J.D. Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf. This move has brought relief to world energy markets, with Brent crude prices reportedly plunging below $80 a barrel.
The core of the interim agreement involves reopening the Strait of Hormuz, which had been closed for months, causing global energy prices to soar. The deal includes immediate sanctions waivers for Iranian oil exports, allowing Iran to sell its crude and petroleum products. This aspect is seen as a significant economic gain for Tehran, as stated by Bloomberg Economics analysts Dina Esfandiary and Ziad Daoud, who commented that Iran's gains would be substantial and new, while Washington would only recover pre-war benefits.
While the interim deal addresses the Strait of Hormuz and immediate economic relief, it defers more complex issues, such as Iran's stockpiles of highly enriched uranium, to a 60-day period of future talks. President Trump indicated that this 60-day deadline is not "hard" if Iran continues to cooperate. The agreement also allows for a $300 billion reconstruction and economic development plan for Iran, though the US is not required to contribute, with other countries like Gulf Arab nations potentially participating.
