A U.S.-Iran peace deal to reopen the Strait of Hormuz could be signed within days, according to Pakistan’s Prime Minister Shehbaz Sharif and officials from both sides, with the final text of a memorandum of understanding already agreed by June 13, 2026.
Sharif announced early Saturday that the two sides had reached a “final, agreed upon text” and said Pakistan was preparing for an electronic signing to be followed by technical-level talks next week. He suggested the initial deal could be signed on Sunday, though Iranian Foreign Ministry spokesman Esmail Baghaei later cautioned that “it will not be tomorrow,” adding that signing could happen “in the coming days.”
Iranian Foreign Minister Abbas Araghchi said Friday that a memorandum of understanding “could happen within the next one or two days, or within the next few days,” while President Trump told Axios he believed a deal could be signed by Monday. Trump reposted Sharif’s statement on Truth Social, signaling alignment with Pakistan’s assessment.
The proposed memorandum would reopen the Strait of Hormuz immediately without tolls and restore prewar shipping within approximately 30 days, according to sources familiar with the agreement. The U.S. naval blockade on Iranian ports would be lifted as part of the initial framework. These terms address the critical disruption Iran imposed on global energy markets when it closed the waterway in March 2026, through which roughly 20% of the world’s oil passed before the war.
The deal also includes a 60-day extension of the current ceasefire, which had effectively collapsed this week with both sides resuming strikes. Details regarding Iran’s nuclear program and the lifting of sanctions will be finalized during the second stage of negotiations, according to the sources and Iranian officials.
Oil markets reacted immediately to the diplomatic progress. U.S. crude oil futures for July delivery fell to $84 per barrel early Saturday, down from above $90 on Friday morning when Trump first signaled a deal was within reach. International benchmark Brent crude sank to around $87 per barrel, reflecting investor confidence that energy supplies would normalize once the strait reopened.
A ceasefire deal had been reached in mid-April, but the two sides exchanged intermittent fire in subsequent weeks, with strikes escalating this week even as diplomacy advanced. The war began on February 28 when the U.S. and Israel launched strikes on Iran, triggering Iranian counterattacks and renewed conflict between Israel and Iran-aligned Hezbollah militants in Lebanon. The conflict has killed thousands and sent global energy prices sharply higher.
Treasury Secretary Scott Bessent said on Fox News that a U.S.-Iran deal would bring economic relief. “We will see. Maybe as soon as this weekend or Monday, we will get on the other side of this,” he told host Laura Ingraham, predicting lower energy prices for Americans once the agreement took effect.
Tensions remained high around the strait even as negotiations progressed. U.S. Central Command said Iran launched several drones at commercial ships on Friday, though U.S. forces downed all of them and traffic flow through the strait continued unimpeded, according to a post on X.
Sources
- NBC News — Final text of peace deal reached, signing timeline, Strait of Hormuz reopening terms, oil price reaction
- Reuters — Pakistani PM statement on deal text, Iranian Foreign Ministry caution on timing, Strait reopening and blockade lifting, nuclear negotiations deferred
- The Washington Post — U.S. and Iran close to signing ceasefire deal, Pakistan’s role as mediator
