Trump signs Iran peace deal as Tehran says it will charge ships in Strait of Hormuz after 60 days

The United States and Iran have signed an initial memorandum of understanding that takes effect immediately, pauses military hostilities and opens a 60-day window to negotiate a fuller agreement.

The accord was signed on June 17, 2026, according to AP reporting, and was described as an initial step rather than a final peace treaty. The reporting says U.S. President Donald Trump and Iranian President Masoud Pezeshkian signed the deal, with Pakistani Prime Minister Shehbaz Sharif helping to mediate.

Axios reported that the signing was completed ahead of an earlier planned ceremony in Switzerland, although a formal meeting is still expected there.

Strait of Hormuz terms

The clearest immediate impact is on shipping through the Strait of Hormuz, one of the world's most important energy chokepoints. AP, Axios and The Guardian all reported that the agreement reopens the strait to commercial shipping for now.

Guardian live coverage said toll-free passage through the strait will last for 60 days under the current terms. That detail gives the deal a built-in deadline and makes the shipping clause a central part of the wider negotiations.

The latest reporting also points to a looming shift after that period. The Guardian said Iranian officials plan to begin charging ships after the 60-day window ends, meaning the current arrangement may only postpone a dispute over transit costs rather than resolve it.

What the deal covers

The reporting describes the agreement as an interim memorandum of understanding, not a final settlement. AP says the deal pauses hostilities and starts a 60-day negotiation period toward a comprehensive agreement.

The package also appears to include sanctions relief and a rollback of military tension while broader terms are still being worked out. AP's transcript of the memorandum says the immediate goal is to stop military confrontation and reopen shipping while the larger questions remain open.

That matters because the parties still have to settle how much relief is already in force, how the shipping arrangement will be enforced and whether the agreement can survive the first serious dispute.

Why it matters

The Strait of Hormuz is a critical route for global oil and LNG shipments, so any change in access or tolls can quickly affect energy markets. Even a temporary toll-free period has immediate implications for trade flows and pricing.

The wider stakes also reach beyond shipping. The reporting says the deal is tied to sanctions relief for Iran, the risk of renewed military escalation if either side says the agreement is breached, and regional security questions that include Lebanon and Hezbollah.

Israel, Gulf states, the U.S. Congress and energy traders are all likely to watch the arrangement closely because the deal could either ease pressure across the region or become a short-lived pause.

What happens next

The next reported milestone is follow-up talks in Switzerland. Those talks are expected to test whether the initial memorandum can be converted into a broader and more durable agreement.

Open questions remain about whether Iran's toll plan is a formal policy or a negotiating threat, whether both sides are describing the shipping terms in exactly the same way and how much sanctions relief is already active.

For now, the deal is in force and the strait is open to shipping, but the 60-day clock means the arrangement is already under pressure from the moment it began.