U.S.-Iran Framework Deal to Reopen Hormuz Faces Months of Delays and Lingering Regional Tensions

-Iran framework deal to reopen the Strait of Hormuz and extend a ceasefire. Japan's Nikkei and South Korea's Kospi each rose approximately 5%. 9%. U.S. Naval blockade on Iranian ports, extending the ceasefire for at least 60 days, and opening technical talks on Iran's nuclear program.

Formal signing of the memorandum of understanding is expected around June 19 in Switzerland. The agreement does not include Israel as a party.

Pakistan's prime minister, Shehbaz Sharif, announced the framework deal on Sunday, June 14. " Hundreds of loaded tankers remained stranded in the Gulf as of June 15. The Japanese Shipowners' Association stated that 38 Japanese-linked vessels remained stuck in the Strait of Hormuz on Monday, June 15.

Energy experts told the Associated Press that full operational normalcy for oil and gas supplies could take months due to mine clearance and high insurance premiums. DW reported that mine clearance in the Strait of Hormuz could take 40 to 50 days. Capital Economics projected that it could take until late September 2026 for around 80% of energy flows through Hormuz to resume.

UNCTAD described the Strait of Hormuz as carrying around a quarter of global seaborne oil trade as well as major LNG and fertilizer flows. The Strait of Hormuz carries roughly one-fifth of globally traded oil. During the Hormuz shutdown, China reduced its oil imports by about 4 million barrels a day.

Shipping insurers relaxed following the June 15 announcement. Oil prices eased following the announcement. Israeli Defense Minister Israel Katz stated that military forces would not withdraw from territory seized in southern Lebanon.