U.S. and Iran Reach Historic Framework to Reopen the Strait of Hormuz, Signaling Major Shift in Middle East Crisis

【HONG KONG, May 26, 2026】 — In a historic diplomatic breakthrough, the United States and Iran have reached an agreement in principle on a memorandum of understanding (MOU) framework. The deal commits both nations to fully restoring commercial shipping through the critical Strait of Hormuz within 30 days of signing, alongside a phased sanctions relief plan over a 60-day ceasefire window .

The progress, confirmed by U.S. President Donald Trump as “moving along nicely,” has brought a wave of optimism to global energy markets which had been severely strained by a naval blockade since mid-April .

Core Terms: A Phased Cessation of Hostilities

According to leaked details of the draft agreement, the implementation will follow a step-by-step process during a 60-day transition period, effectively trading economic relief for regional stability :

• Comprehensive Ceasefire: The U.S., Iran, and their respective regional proxies—including forces across the Israel-Lebanon front—must immediately halt all hostile military actions .

• Reopening the Maritime Chokepoint: Iran must immediately begin clearing naval mines from the Strait of Hormuz . Commercial vessel and oil tanker traffic must be fully restored to pre-war levels within 30 days, without Iran imposing any “extraordinary” transit fees.

• Lifting Blockades and Asset Unfreezing: In return, the U.S. will lift its naval blockade on Iranian ports, which has been in place since mid-April . Washington will also release an initial tranche of $12 billion in frozen Iranian assets and grant sanctions waivers to allow Iran to resume international oil sales.

The Stumbling Block: Nuclear Stockpiles

While the general framework is solid, a major rift remains regarding Iran’s nuclear capabilities, making it the most intensely debated detail of the ongoing negotiations :

• The U.S. Narrative: Senior U.S. officials maintain that the framework places strict limits preventing Iran from retaining nuclear weapons. They claim Tehran has agreed to surrender its stockpiles of highly enriched uranium, with one official describing the move as “getting rid of the nuclear dust.” 

• The Iranian Denial: Iranian state media and officials close to the Islamic Revolutionary Guard Corps (IRGC) have fiercely rejected these claims . Iranian negotiators clarified that the current MOU is not a final nuclear deal; rather, nuclear issues have simply been designated as a topic for a time-bound negotiation to take place within the 60-day window .

Leadership Responses: Optimism Tempered by Caution

Posting on his social media platform Truth Social, President Trump expressed optimism about the talks, hinting at a grander strategic vision where a successful peace deal could pave the way for bringing Iran into the Abraham Accords framework. However, Trump urged patience, noting that “nobody should rush” as critical fine print is still being negotiated.

In Tehran, Iranian Foreign Ministry Spokesman Esmail Baghaei struck a more reserved tone . While confirming that consensus had been reached on most points, he warned that an official signing was “not imminent.” Baghaei pointed to domestic political friction within the U.S. and potential interference from Israel as primary obstacles to a finalized deal .

Global Strategic Impact

The Strait of Hormuz handles roughly one-fifth of the world’s total petroleum trade. If the U.S. and Iran successfully execute this memorandum, it will not only de-escalate an imminent war footing in the Middle East but will also provide vital stabilization to the global energy supply chain and international oil prices.