US and Iran Reach Deal to Reopen Critical Oil Transit Corridor

The US and Iran have reached an agreement to reopen the Strait of Hormuz, a critical waterway that carries around 20% of the world's oil. The deal, signed on June 19, 2026, aims to restore normal shipping traffic within approximately 30 days.

The crisis began in February 2026 when US-Israel strikes on Iran triggered a rapid escalation. A naval blockade was imposed on the strait by the US, which led to Iranian control measures effectively choking off the oil transit corridor. A ceasefire established in April 2026 provided a fragile foundation for negotiations.

The memorandum of understanding that emerged from these talks includes provisions for lifting the US naval blockade and releasing approximately $24 billion in frozen Iranian funds upon achieving specified milestones. President Trump has referred to the strait as 'permanently toll-free' under the new agreement, but it appears this will not be the case.

Iran had imposed crypto-based fees on vessels transiting the strait since April 2026, charging roughly $1 per barrel of oil or up to $2 million per ship in Bitcoin, Tether, or Chinese yuan. The agreement's core structure is milestone-based, with both sides fulfilling their obligations under the memorandum of understanding.