The United States and Iran signed a memorandum of understanding on June 15 to end their nearly four-month war and reopen the Strait of Hormuz, with a formal signing ceremony scheduled for June 19 in Switzerland. The deal includes a 30-day timeline for the U.S. to lift its blockade of the strait, suspension of oil sanctions, and release of $24 billion in frozen Iranian assets. Crude prices tumbled to three-month lows with Brent falling 4.2% to $83.68/barrel and WTI dropping 4.9% to $80.75/barrel. However, shippers and analysts caution that confidence in resuming Hormuz transits could take weeks to rebuild, with thousands of mines needing clearance and approximately 38 Japanese-linked vessels still stranded in the strait. A full return to pre-crisis normality is expected to take two to three months.
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