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US and Iranian presidents sign deal aiming to end war

June 18, 2026

The United States and Iran have signed an initial peace agreement to end their recent conflict, which began when the US and Israel assassinated Iran's Supreme Leader and top military officials on February 28th. The deal provides for reopening the Strait of Hormuz shipping lane, establishing a $300 billion reconstruction fund for Iran, and lifting all US sanctions, though the central issue of Iran's nuclear weapons program remains under negotiation for a 60-day extendable period. The conflict had caused significant global economic disruption by effectively closing the Strait of Hormuz, through which approximately 20% of the world's oil and gas normally flows, leading to surging energy prices and inflation.

Who is affected

  • US President Donald Trump
  • Iranian President Masoud Pezeshkian
  • Iranian parliamentary speaker Mohammad Bagher Ghalibaf
  • Israeli Prime Minister Benjamin Netanyahu
  • French President Emmanuel Macron
  • US lawmakers (Republican Senators Bill Cassidy and Ted Cruz, Democratic Senator Jeanne Shaheen)
  • Hezbollah (militant group in Lebanon)
  • Global oil markets and traders
  • Countries and companies dependent on Strait of Hormuz shipping
  • Iranian citizens (through reconstruction efforts)
  • Israeli military forces in Lebanon

What action is being taken

  • The US and Iran are terminating military operations on all fronts
  • Iran is reopening the Strait of Hormuz with no charges for 60 days
  • The US is terminating all sanctions on Iran
  • Iran's enriched uranium is being down-blended on site under IAEA supervision
  • Israel is continuing to launch attacks on Hezbollah in Lebanon despite the agreement
  • Trump is returning to Washington from the G7 summit
  • US officials are holding media briefings about the agreement

Why it matters

  • This agreement matters because it aims to resolve a conflict that threatened global economic stability through the closure of a critical shipping waterway responsible for 20% of the world's oil and liquefied natural gas transport. The war drove up energy prices and renewed inflationary pressures worldwide, with Trump warning it could lead to "worldwide depression" if continued. The agreement represents a significant shift in US-Iran relations, though its success depends on successfully negotiating the unresolved nuclear weapons issue within 60 days, and the deal faces substantial domestic political opposition that could threaten its implementation.

What's next

  • The US and Iran will negotiate a final deal regarding Iran's nuclear program over a maximum 60-day period (extendable with mutual consent)
  • Iran may begin charging fees for ships crossing the Strait of Hormuz after the 60-day free period expires
  • The US will return frozen Iranian assets at "a certain point in time"
  • Emirati authorities could potentially build infrastructure like power plants in Iran if Iran "behaves" (given as a hypothetical example by US officials)

Read full article from source: BBC