Global Shipping Relief: US and Iran Sign Deal to Reopen Hormuz
The United States and Iran have formally approved a memorandum of understanding through electronic signatures, extending their existing ceasefire and setting the stage for the gradual reopening of the strategically important Strait of Hormuz.
Speaking late Wednesday, Iranian Foreign Ministry spokesperson Esmaeil Baghaei confirmed that the agreement had officially taken effect. According to Iran’s state news agency IRNA, Baghaei stated that the memorandum was finalized with the signatures of both presidents and emphasized that attention would now shift to ensuring its implementation.
U.S. President Donald Trump also confirmed the signing while speaking to reporters after an event at the Palace of Versailles near Paris, France. Trump said the agreement had been signed at the historic venue, a claim later reaffirmed by the White House, which described the memorandum as a significant diplomatic breakthrough.
The new arrangement builds on a temporary ceasefire that had reduced hostilities in the conflict involving the United States, Israel, and Iran. Under the memorandum, the ceasefire will be extended for an additional 60 days, during which Iran is expected to progressively reopen the Strait of Hormuz while the United States eases its blockade of Iranian ports.
Beyond the immediate security measures, the agreement is expected to serve as a foundation for renewed negotiations over Iran’s nuclear programme. As part of the understanding, Washington has indicated it will begin the process of waiving certain sanctions imposed on Iran. Because the document was executed electronically, Baghaei noted that the previously anticipated signing ceremony in Geneva, Switzerland, will no longer take place.
