U.S. and Iran Agree to End War and Reopen Strait of Hormuz but Leave Nuclear Issues Unresolved

The Trump administration and Iran's leadership agreed on Sunday to terms to end their war and reopen the Strait of Hormuz. The strait, through which about 20% of the world's oil flows, is not scheduled to fully open until Friday, June 19, 2026. Full pre-conflict traffic volume through the strait is realistically a 2027 story, according to David Jorbenaze, global oil market leader at ICIS.

Tehran and Washington now have 60 days from June 15, 2026, to reach a more comprehensive deal. President Trump said he may resume attacks if a deal is not reached within the 60-day period. As of Monday, there was no clarity as to what will happen with Iran's nuclear program under the interim deal, and both sides have different versions regarding what has been agreed to so far.

Gas prices are expected to fall but will remain above pre-war levels for some time, analysts say. It will take weeks or even months for oil flows to return to normal levels after the strait reopens, with supply further constrained as Gulf nations ramp up production and repair damaged infrastructure.

On Sunday, Israel bombed southern Lebanon, a move that upset Trump and appeared to delay the agreement by a few hours.

On Monday, Israel killed one person in another strike in Lebanon. President Trump is currently in France for the annual G7 summit. Earlier this month, President Trump threatened to bomb Oman for allegedly scheming to set up a toll system with Iran in the Strait of Hormuz.

As of early June 2026, some 70% of Americans disapproved of how President Trump was handling cost-of-living pressures. S. Senator Lindsey Graham posted on X on Sunday that he was "somewhat concerned" that Iran's description of the preliminary agreement differed from the White House's description.