America ends Hormuz blockade as talks resume

The US-Iran interim peace agreement took effect and shipping began returning to the Strait of Hormuz as the US announced the end of its blockade and a complex round of negotiations over Tehran’s nuclear program began.

Vice President J.D. Vance told reporters at the White House that a 60-day deadline to work out contentious details in the so-called memorandum of understanding, signed late June 17, was approaching.

He ignored concerns that Iran might eventually impose tolls on traffic through the Strait of Hormuz, a move that would turn the vital transportation bottleneck point — widely considered international waters — into a money maker for Tehran.

“Well, first of all, we believe that international waterways should be free of tolls,” he said, noting that countries in the region “will work together to create a proper security framework for the strait in the future.”

If the filibuster is not open, “there will be no final deal.”

Earlier on June 18, Trump posted on Truth Social that “oil is flowing,” hours after signing a memorandum of agreement to extend the ceasefire and begin negotiations to end the conflict that began with Israel in late February. Iran’s closure of the strait sent energy prices soaring, increasing the risk of a global economic crisis and spreading chaos across the Middle East.

US Central Command announced on June 18 that it had lifted the ban on traffic to and from Iranian ports and coastal areas.

“U.S. forces are not disrupting the transit of ships to or from Iranian ports on the Arabian Gulf and the Gulf of Oman,” the command said in a social media post. “All U.S. military blockade enforcement efforts have ceased. Our great naval vessels will remain in the general area to ensure that all aspects of the agreement are observed, enforced, and carried out with full force and effect.”

Ships carrying stranded oil began pulling out of the Strait of Hormuz on June 18, while Kuwait said it would begin increasing production as a peace deal ramped up activity in the region. Ships carrying about 10 million barrels of oil have either fallen out of or are passing through the strait, including the first Saudi-owned tankers since the war began more than three months ago.

Iran said commercial ship traffic at southern ports returned to normal on Monday, according to the semi-official Iranian Student News Agency.

Today, the US military, in accordance with the President’s directive, lifted the blockade of all maritime traffic entering and exiting Iranian ports and coastal areas. US forces are not obstructing the transit of ships to or from Iranian ports. All US military blockade… – US Central Command (@CENTCOM) 18 June 2026

Several shipping and oil officials have previously said they need more clarity, including whether the strait is free of mines and whether they need to seek any permission from Iran before sailing.

Iran supporters, including some of Trump’s Republican allies, say the deal gives the Islamic republic too much leeway in terms of sanctions relief and potentially freeing up tens of billions of dollars in funds. Some have said it is no better than the Obama administration’s 2015 nuclear deal which Trump called “the worst deal ever.”

Sen. Roger Wicker (R-Miss.), chairman of the powerful Senate Armed Services Committee, said in a statement, “In particular, the $300 billion Fund for Iran Reconstruction and Economic Development – ​​although not funded by American taxpayers – will make Iran’s payments under President Obama’s 2015 deal seem modest by comparison.”

“The Iranian regime has not given up its ultimate goal – ‘Death to America, death to Israel.’ The regime will invest every penny it receives to pursue that goal,” he said.

Asked about reports that Israeli Prime Minister Benjamin Netanyahu and his Cabinet are unhappy with the deal, Vance suggested that officials believe the United States is Israel’s strongest friend.

Vance said, “If I were in the Cabinet of the Israeli government, I probably wouldn’t be attacking our only powerful ally left anywhere in the world.” “The problem for Israel is not Donald J. Trump, and anyone in Israel who thinks their biggest problem is the President of the United States needs to wake up and understand the reality of the situation in the country.”

According to a copy of the memorandum of understanding published by Iranian President Massoud Pezeshkian on June 18, Iran will arrange for the passage of commercial ships through the strait with “no fees only for 60 days” and traffic must be restored “within 30 days.”

According to the agreement, Iran will negotiate with Oman to define the future administration and maritime services of the Strait of Hormuz, consistent with “applicable international law and the sovereign rights of coastal states” of the Persian Gulf.

It was unclear whether Vance would meet with Iran’s chief negotiator, Speaker of the Iranian Parliament Mohammad Bagher Ghalibaf, in Switzerland on June 19 for talks to permanently end the war as planned. He said that the US had met its primary objectives for the conflict and suggested that the agreement could only benefit it as agreed.

“Iran has been weakened, their nuclear program has been destroyed, their economy is in dire straits and if they change their behavior, big things are going to happen for Iran and the world,” he said. “If they don’t do it, our backs won’t matter – either way, we win. And that’s the way the president has set up this deal and this negotiation.”

Oil fell further on June 18, with Brent falling 2.5% to $77.55 a barrel by 12:38 p.m. in New York. It dropped to a low near $95 late last week after Trump said a deal was near.

Still, with oil about 30% higher for the year, energy traders say it will take several months, if not more, for the volume of oil and liquefied natural gas passing through Hormuz to return to normal.

During the 60-day talks, the parties will try to agree on sanctions over Tehran’s nuclear program and how to reduce or destroy its stockpile of highly enriched uranium. Many nuclear experts say 60 days is too short to work on something so complex and technical. The agreement states that the deadline may be extended.

The 2015 nuclear deal, which Trump ridiculed and abandoned during his first term, took nearly two years to finalize.

Israel and the US said the conflict was necessary to prevent Iran from acquiring nuclear weapons. The Islamic Republic has always denied doing so, although it has raised the suspicions of many governments by enriching uranium far beyond the levels required for nuclear power plants.

While Iran’s economy has collapsed due to the war and some of its senior leaders have been killed, its ruling regime still remains strong. The Iranian military proved capable of causing significant damage to allies such as the US and UAE by firing thousands of drones and missiles across the region.

US gasoline prices fell below $4 a gallon for the first time since March after the memorandum was agreed upon.

Under the memorandum, Iran would be allowed to immediately resume oil exports, along with relief from US sanctions. Tehran would also potentially benefit from a $300 billion rehabilitation fund to be set up by the US and regional allies. America has said that it will not give any money but other countries are free to do so.

The document states that the US can freeze Iranian funds held in various countries, even if Tehran meets certain criteria.

Written by Jennifer A. Dlouhy, Omar Tamo and Altaf Najafizada