US and Iran sign memorandum to lift blockade and begin nuclear talks amid regional fighting
President Trump and Iran reached a memorandum of understanding that ends the U.S. blockade of Iranian ports, reopens the Strait of Hormuz and launches a 60-day nuclear negotiation period, while clashes between Israel and Hezbollah continue.
The United States and Iran announced a memorandum of understanding that ends the U.S. blockade of Iranian ports, reopens the Strait of Hormuz and initiates a 60-day period of nuclear negotiations. Vice President JD Vance said the document, about a page and a half long, provides a broad framework in which Iran will receive benefits if it meets its obligations, including a commitment to regional peace and an end to funding of groups the U.S. designates as terrorists. > "Paragraph one of the agreement says effectively that Iran commits itself, just as the United States commits itself, to regional peace and stability," Vance told CNN.
President Donald Trump indicated that the strait is already partially open and expects full reopening by Friday, describing the passage as "toll-free." U.S. officials said traffic would increase quickly, with 25 ships per day already transiting and expectations of 40-50 ships within weeks, though normal pre-conflict levels may take longer to resume.
The deal does not require Israel to withdraw from Lebanon, Gaza or Syria. Israeli Prime Minister Benjamin Netanyahu, speaking at a press conference, reiterated that Israel will remain in its security zones for as long as necessary and that Iran will not acquire nuclear weapons "with or without an agreement." He also acknowledged that he and President Trump do not always see eye to eye.
Hezbollah and the Israeli Defense Forces continued to exchange fire in southern Lebanon on Monday. Hezbollah claimed to have struck Israeli tanks and vehicles with drones and missiles, while the Israeli military reported precise airstrikes on Hezbollah positions and said no Israeli soldiers were injured.
Oil markets reacted to the announcement, with Brent crude falling 4.8% to $83.17 a barrel and U.S. WTI dropping 4.9% to $80.75, their lowest levels since early March. The Dow Jones Industrial Average closed at a record 51,671, up 0.92%, while the S&P 500 and Nasdaq Composite also posted gains.
U.S. officials said the memorandum’s full text will be released within 24-48 hours of the formal signing ceremony scheduled in Geneva. They also noted that Iran plans to charge fees for Strait traffic after the 60-day window and that mines laid in the waterway will need to be cleared before normal operations resume.
