U.S. and Iran Reach Memorandum of Understanding to End Conflict

President Trump announced that the United States and Iran reached a memorandum of understanding to end the conflict. The agreement includes a resumption of tanker traffic through the Strait of Hormuz. Brent crude fell nearly 5 percent to around $83 per barrel on Monday, reaching a three-month low.

West Texas Intermediate crude dropped below $81 per barrel the same day. Wholesale gas prices in Europe fell 6 percent. President Trump posted "Let the oil flow" on social media Sunday. He also announced on social media that a memorandum of understanding had been reached.

Iran's Supreme National Security Council stated the memorandum was finalized on June 14 after months of negotiations. The memorandum calls for an immediate and permanent ceasefire across all fronts, including Lebanon, effective the night of June 14. The memorandum references a naval blockade on Iran.

The 60-day period after signing will focus on nuclear matters. The identity of the Iranian signatory to the memorandum has not been disclosed. Iranian state media have described the agreement as reached with the United States.

Iran's economy has contracted sharply, with unemployment approaching 50 percent. Iranian officials have stated that their four main nuclear facilities have been destroyed. Iran's four main weapons facilities—Fordow, Isfahan, Natanz, and Arak—are destroyed.

Iran's nuclear scientists have been killed. The one university that helped develop the farm team of future Iranian nuclear scientists was also destroyed. Iran's dual-use steel plants, used to fabricate missile bodies, have been destroyed.