U.S. and Iran sign memorandum of understanding to reopen Strait of Hormuz
The U.S. and Iran have digitally signed a memorandum of understanding that calls for reopening the Strait of Hormuz and launching 60 days of technical talks. A formal signing ceremony is scheduled for Friday in Switzerland.
thehindubusinessline.comThe United States and Iran have digitally signed a memorandum of understanding that outlines steps to reopen the Strait of Hormuz and begin 60 days of technical negotiations, senior U.S. officials said Monday. The document was signed remotely by President Trump, Vice President JD Vance and Iranian Parliament Speaker Mohammad-Bagher Ghalibaf.
A formal signing ceremony is still planned for Friday, likely in Switzerland.
Terms and timeline The memorandum calls for immediate steps to clear sea mines and restore shipping traffic through the strait, which had been blocked during the conflict. One senior U.S. official said a significant increase in vessel movements is expected within two weeks.
Iran's Revolutionary Guard stated that the country will receive half of its roughly $24 billion in long-frozen funds before final negotiations begin during a 60-day ceasefire extension. Two senior U.S. officials said no frozen assets have been released so far and that any releases would occur in phases after Iran demonstrates compliance.
Regional reactions Israeli officials said the country is not bound by the agreement to end its fight with Hezbollah or withdraw forces from Lebanon. President Trump, Pakistani mediators and Iran have said the deal includes a cessation of hostilities on all fronts, including Lebanon.
Lebanon's army urged displaced residents to delay returns to southern border villages, citing risks of Israeli violations. Residents who returned to Nabatieh found extensive damage from recent strikes.
Shipping and markets Commercial shipping associations warned that it remains too risky for vessels to transit the strait until more details on safe routes and mine clearance are provided. Maersk said it is too early to assess any impact and has made no changes to operations.
Oil prices fell after the announcement, with Brent crude dropping $4.22 to $83.11 per barrel. U.S. stock indexes rose, with the S&P 500 gaining 1.5 percent in early trading.
