Both sides have confirmed that the US and Iranian leaders have formally signed the final text of a peace agreement framework via remote means. The agreement is now in effect.
The signing ceremony was originally scheduled for June 19 in Switzerland, but it was moved up to reopen the Strait of Hormuz as soon as possible—one of the rare points of consensus between the two nations.
Next up, a meeting between the US delegation, led by Vice President Vance, and the Iranian delegation, headed by Parliament Speaker Mohammad Bagher Ghalibaf, is still set for June 19 in Switzerland. At that time, Pakistan will host a formal ceremony with support from Qatar, kicking off technical-level talks.
On June 17 local time, Iran’s official news agency IRNA published the text of the US-Iran memorandum of understanding. However, it has not yet been confirmed by relevant Iranian government departments.
Key highlights include:
An immediate and permanent halt to all military operations across all fronts, including Lebanon, with a commitment to never wage war or military action against each other again, and to refrain from using or threatening force.
The US will immediately lift its maritime blockade of Iran and cease any interference or obstruction. During this period, ship traffic will return to pre-war levels. Additionally, the US pledges to withdraw its military forces from the region around Iran within 30 days after the final agreement is reached.
Iran will do its utmost to establish arrangements allowing commercial vessels free and safe passage from the Persian Gulf to the Sea of Oman for a limited period of 60 days. Commercial shipping will begin immediately. Considering the need for Iran to clear technical and military obstacles, as well as necessary tasks like mine removal, normal passage will resume within 30 days.
The US commits to working with its regional partners to develop a mutually agreed-upon plan for Iran’s economic reconstruction and development, providing at least $300 billion in funding. The execution mechanism for this plan will be finalized within 60 days as part of the final agreement. The US will provide all necessary approvals, exemptions, and permits for related financial transactions.
The US pledges to terminate all sanctions against Iran within a mutually agreed timeline outlined in the final agreement, including those from UN Security Council resolutions, IAEA Board of Governors resolutions, and all unilateral US sanctions, including secondary sanctions.
Iran reaffirms that it will not produce or acquire nuclear weapons. The US and Iran have agreed to resolve the issue of enriched material stockpiles through a mutually agreed mechanism, with the minimum approach being on-site dilution under IAEA supervision.
Regarding the future management of the Strait of Hormuz, there are still differences or ambiguities in public statements from both sides.
Iran’s lead negotiator, Parliament Speaker Ghalibaf, stressed that the Strait of Hormuz “will never return to its previous state,” and that Iran will charge “service fees” for the waterway.
Iran’s Foreign Ministry Spokesperson, Esmaeil Baghaei, further stated that Tehran has basically finalized a management mechanism for the Strait of Hormuz with Oman, which will include fees for services provided in the strait. The relevant arrangements are being drafted.
Vance, on the other hand, publicly stated that the US-Iran MOU is expected to keep the Strait of Hormuz “open long-term without tolls,” with specific details to be worked out in the next round of technical negotiations.
The Strait of Hormuz, located between Iran and Oman, is the only sea passage from the Persian Gulf to the Indian Ocean. Although its main deep-water shipping lanes lie almost entirely within Omani territorial waters, Iran holds full control. The UN Convention on the Law of the Sea states that coastal states bordering international straits cannot arbitrarily restrict or impose tolls on transit passage.
As of April 2026, over 168 countries and entities have formally ratified the UN Convention on the Law of the Sea, including major powers like China, Russia, Japan, and India. Iran has not formally ratified the convention, arguing it is not bound by “transit passage” rules. The US has also not ratified it.
As early as March 30, Iran’s Parliament National Security Committee passed a bill to charge tolls on vessels transiting the Strait of Hormuz. The plan includes implementing financial arrangements and a fee system in Iranian rials, and maintaining the dominant role of armed forces like the Revolutionary Guard.
Last month, the Iranian government announced the establishment of a new body to manage the Strait of Hormuz, the “Persian Gulf Strait Authority,” and a social media account with the same name went live that day. The account claims to be the official channel, providing real-time updates on the strait’s latest developments. The account is operated by Iran’s Supreme National Security Council and the Islamic Revolutionary Guard Corps Navy.
Previous reports suggested that the “Persian Gulf Strait Authority’s” core rules might include charging “safe passage fees” to transiting ships, payable only in Iranian currency, with sovereign oversight extending to underwater pipelines and data cables passing through the strait.
Last week, the Iranian government began drafting the “Strait of Hormuz Environmental Service Fee Regulations.” Sources from shipping safety operators reveal that single-transit fees could reach up to $120,000 for bulk carriers and up to $160,000 for oil tankers, with specific rates varying based on vessel type, cargo, and the owner’s nationality.
US intelligence reports indicate that Iran hopes to use the service fees from ships passing through the Strait of Hormuz to fund its post-war reconstruction.
On June 15, Chinese Foreign Ministry Spokesperson Lin Jian stated at a regular press conference that the Strait of Hormuz is a crucial international waterway. Restoring stability there serves the common interests of regional countries and the international community, and he expressed hope for the strait’s safe and free passage as soon as possible.
