According to Iranian state media Mehr News Agency, the draft memorandum of understanding (MOU) between the United States and Iran stipulates that the Strait of Hormuz will be reopened "according to Iran's arrangements" within 30 days, simultaneously lifting oil sanctions and releasing approximately 24 billion USD of Iran's frozen assets. This draft surfaced after President Trump announced the end of the US-Iran war on June 12, but Iran's Foreign Ministry emphasized that Tehran has not yet made a final decision.
(Background: Trump announces the end of the US-Iran war! A complete timeline from airstrikes to ceasefire overnight)
(Additional context: Shell CEO warns: Closure of the Strait of Hormuz could push the global oil gap to 1.2 billion barrels)

Key Summary

US-Iran MOU draft: The Strait of Hormuz will be reopened "according to Iran's arrangements" within 30 days.
Supporting measures: Lifting oil sanctions, US military withdrawal, releasing about 24 billion USD of Iran's frozen assets.
The Strait of Hormuz accounts for about one-fifth of global oil supply; after the March blockade, oil prices once surged past 80 USD.

The US-Iran negotiations reveal a timeline. According to Iranian state media Mehr News Agency, the draft memorandum of understanding includes that the Strait of Hormuz will be reopened "according to Iran's arrangements" within 30 days, with a final negotiation window of 60 days to address nuclear and economic issues, during which approximately 24 billion USD of Iran's frozen assets will be released.

The commitments from the US side in the draft are quite specific, including lifting Iran's economic sanctions, withdrawing forces around Iran, ending naval blockades, and canceling oil sanctions along with returning frozen funds. After this news emerged, the crude oil market appeared to see a more concrete easing opportunity.

WTI price is currently at 83.6 USD, down -4.6% intraday.

30-Day Unlock of the Strait

The Strait of Hormuz is a critical choke point for global oil, with about one-fifth of crude oil passing through. After Iran blocked the strait in March and threatened to attack passing ships, oil prices surged to 80-82 USD. The International Energy Agency (IEA) described it as "the largest supply disruption in the history of the global oil market," and Shell's CEO warned that the global oil gap once surged to 1.2 billion barrels. Now, a draft agreement counts down this waterway to 30 days, and Bitcoin also rebounded yesterday to re-enter the 64k USD range.

However, this countdown begins from an unsigned draft. Mehr News Agency also mentioned that the agreement still awaits final approval from relevant authorities, and Iran's Foreign Ministry said Tehran has not yet made a final decision.

Frequently Asked Questions

When will the Strait of Hormuz reopen?

According to Iranian state media Mehr News Agency, the draft memorandum of understanding stipulates that the Strait of Hormuz will be reopened "according to Iran's arrangements" within 30 days. But the draft has not been officially signed, and Iran's Foreign Ministry states that Tehran has not yet made a final decision.

What impact will the reopening of the Strait of Hormuz have on oil prices?

The Strait accounts for about one-fifth of global oil supply; after the March blockade, oil prices once surged past 80 USD. If reopened within 30 days and oil sanctions are lifted, it would significantly ease the oil supply crisis and the resulting inflationary pressures.

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