President Donald Trump declared on Sunday that the United States and Iran had reached a new understanding with Iran to end more than 15 weeks of armed conflict and help restore passage through the Strait of Hormuz – a waterway that has choked roughly 20% of the world’s oil supply since late February.
President Donald Trump posted to Truth Social on June 14 the following:
“The Deal with the Islamic Republic of Iran is now complete. Congratulations to all! I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow! President DONALD J. TRUMP.”
Oil markets responded to the news – the price of a barrel of oil dropped roughly 5% by Monday morning, per Investing.com, hitting its lowest point since the very first days of the Iran conflict back in March.
Trump arrived in France later than his fellow heads of state, flying directly from D.C. after attending the UFC Freedom 250 fight night on the White House South Lawn – held Sunday evening in celebration of his 80th birthday and America’s 250th birthday – a busy schedule that prompted France to push the summit’s official start date back by one full day.
The Strait of Hormuz has been essentially sealed off to international commercial shipping routes since late February, as previously reported by The Dallas Express – when Iran’s Islamic Revolutionary Guard Corps moved to block passage in response to joint US and Israeli airstrikes on Iranian military targets that began on February 28.
Iran’s Foreign Minister previously stated that the Strait was “open, but closed to our enemies.” Iranian forces issued warnings, carried out attacks on merchant vessels (including projectile strikes and at least one engine-room fire on a cargo ship they claimed responsibility for), and deployed sea mines all along the Strait.
Trump then responded with a full naval blockade of Iranian ports, which rattled global energy markets.
The New Deal and Its Limits
Sunday’s announcement was one of the biggest diplomatic breakthroughs since the conflict began. Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed that the final text of the memorandum has been agreed on, and Pakistan – one of the two lead mediators alongside Qatar – announced that the official signing ceremony will take place in Switzerland this Friday, June 19, per US News.
That said, there are still some big uncertainties lingering.
European officials, according to CNN, said the actual agreement has been kept extremely secret, so G7 countries haven’t been able to independently check exactly what Iran has committed to. Meanwhile, Iranian state media pushed back against Trump’s claim that the Strait would be permanently “toll-free,” suggesting that Tehran still plans to make some money from the waterway and may push for more concessions before fully cooperating.
France’s Agenda Takes Shape
French President Emmanuel Macron welcomed leaders to the Alpine resort town and laid out four main priorities for the three-day G7 summit: assessing the impact of the new U.S.-Iran deal, continuing support for Lebanon, ensuring the long-term reopening of the Strait of Hormuz, and pushing forward a bigger agreement on Iran’s nuclear and ballistic missile programs. “We will also look at ways to diversify energy routes from the region,” Macron said, highlighting Europe’s desire to become less dependent on the Strait of Hormuz.
British Prime Minister Keir Starmer and other G7 leaders have also stressed that permanent, toll-free freedom through the Strait of Hormuz is non-negotiable for stabilizing global energy markets.
Looking Ahead
The “framework” of the agreement announced on Sunday was welcomed by Germany, France, the UK, and Italy as a major diplomatic breakthrough. However, it still hasn’t been signed, and its durability will be tested over the next 72 hours of diplomacy in France, as well as by whether Iran softens or hardens its stance before Friday’s signing ceremony in Switzerland.
