Trump and Iranian President Masoud Pezeshkian signed a 14-point memorandum of understanding Wednesday night at the G7 Versailles dinner, remotely via video link. The deal extends the ceasefire by 60 days and reopens the Strait of Hormuz, shut since April 13. A 60-day window opens for nuclear framework talks. G7 backed the deal in a joint statement; France and the UK lead an international maritime escort mission to clear mines. Brent crude fell $1.40 to $82.30. Oil tanker insurance premiums dropped 7%.
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Strait of Hormuz: the chokepoint math
The strait handles roughly 21% of global oil trade — about 17 million barrels per day. Since the April 13 blockade, shipping insurance surged 340% and Asian refiners rerouted around the Cape of Good Hope, adding two weeks per voyage. The deal requires all mines to be verified cleared within the 60-day escort mandate. France and UK naval assets are already positioned in the Persian Gulf.
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60-day nuclear clock
The MOU launches a 60-day clock for nuclear endgame talks. Iran must propose a framework for its program's future scope; failure to do so automatically voids the ceasefire. Swiss talks were postponed. Trump said the full text will be released in days. Analysts flag the MOU does not specify uranium enrichment caps — the central dispute for the follow-on negotiation.
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G7 consensus: rare unified Western signal
The G7 joint statement carries a U.S. signature for the first time since Trump's return — breaking the pattern of unilateral American statements at multilateral summits. The communiqué also pledges tougher Russia sanctions. Assigning maritime escort leadership to France and UK distributes military burden away from Washington while locking allies into enforcement.
The strait is open. Whether 60-day nuclear talks can cap Iran's enrichment program determines if this is a strategic breakthrough or a tactical pause.
Sources
- ✓ NBC News — Trump and Iran's president sign initial deal to end war, open Strait of Hormuz — June 17 2026
- ✓ NPR — U.S. and Iran announce an initial deal to end the war and reopen the Strait of Hormuz — June 15 2026
- ✓ Council on Foreign Relations — The Iran Deal Reopens the Strait. Much Remains to Be Done — June 2026
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