U.S. and Iran Reach Agreement to End War; Formal Signing Set for June 19

The United States and Iran have finalized a memorandum of understanding (MoU) to end active military conflict, marking a significant diplomatic breakthrough. According to statements from President Donald Trump and Iran’s Supreme National Security Council, the agreement mandates an immediate cessation of military operations "on all fronts," including Lebanon, and the lifting of the naval blockade that has restricted regional shipping. A formal signing of the accord is expected to take place in Switzerland on June 19. Central to the agreement is the reopening of the Strait of Hormuz, a move expected to normalize global oil markets and maritime trade. While the MoU effectively halts kinetic strikes, administration officials, including Vice President JD Vance, noted that the deal initiates a 60-day period for technical negotiations. These talks will focus on ensuring Iran never attains a nuclear weapon and addressing the funding of regional proxies. Pakistan is credited as a key mediator in the negotiations. Despite the breakthrough, observers and markets remain focused on implementation risks, specifically regarding how the ceasefire will be enforced and how quickly global shipping routes will return to standard operations. While maritime restrictions are being eased, further details regarding the status of broader economic sanctions are expected to emerge during the upcoming technical talks.