US and Iran reach a peace deal to end war, allowing Tehran to sell oil and fuel

The United States and Iran have reportedly reached a significant peace agreement aimed at ending their recent conflict, which began in February 2026. This deal, described as a memorandum of understanding, will allow Tehran to immediately resume oil and fuel sales, providing crucial economic relief as sanctions related to these sales are lifted. A core component of the agreement also mandates the reopening of the vital Strait of Hormuz for free and safe navigation, a move expected to stabilize global energy markets.

However, the benefits for Iran are contingent upon its adherence to specific conditions. These include commitments not to pursue nuclear weapons, neutralizing enriched nuclear material, and ensuring unrestricted passage through the Strait of Hormuz. While the initial agreement addresses immediate hostilities and economic concerns, more complex issues, particularly Iran's nuclear program and ballistic missile capabilities, are slated for further negotiations during a 60-day ceasefire period.

US President Donald Trump announced the breakthrough, with Iranian officials also confirming the understanding. The formal signing of this interim peace deal is anticipated to take place in Switzerland on Friday, June 19, 2026.