US-Iran MoU to reopen Strait of Hormuz, extend ceasefire for 60 days, and what it means for crypto

A tentative memorandum of understanding between the United States and Iran, proposed on May 28, would extend their ceasefire by 60 days, reopen the Strait of Hormuz to unrestricted shipping, and tie sanctions relief directly to Iranian compliance on nuclear negotiations. If signed, it would mark the most significant diplomatic breakthrough between the two countries in years.

The deal is still awaiting approval from both President Trump and Iranian leadership. But reports from early June suggest a signing could happen within the coming week, with ongoing refinements being made to the framework’s language and terms.

What the deal actually includes

The MoU covers several interlocking commitments. Iran would clear naval mines from the Strait of Hormuz within 30 days, a critical timeline given that roughly a fifth of the world’s oil passes through that narrow waterway. During the ceasefire period, Iran would also forgo imposing tolls on maritime traffic.

In exchange, the US would offer phased sanctions relief contingent upon Iranian compliance with nuclear program negotiations, particularly around limits on highly enriched uranium.

The mediation itself has been brokered by Pakistan and Qatar, not by European powers or the UN Security Council. Israeli officials have confirmed they are not a party to the MoU.

How we got here

Tensions between the US and Iran escalated sharply around February 28, 2026, following a series of US and Israeli strikes targeting Iranian assets. In retaliation, Iran deployed mines in the Strait of Hormuz, leading to a US naval blockade that disrupted oil trading and shipping flows in the region. By April 2026, a fragile ceasefire was established, yet the situation remained volatile with missile incidents and airstrikes occurring through late May.

What this means for crypto investors

As news of the potential ceasefire extension and Hormuz reopening circulated, Bitcoin exhibited notable gains. Oil prices reacted in the opposite direction, with the prospect of unrestricted shipping through Hormuz pointing toward more supply hitting the market.

The MoU hasn’t been signed yet. It remains tentative, subject to approval from leaders on both sides. If the deal collapses, oil prices would spike, risk-off positioning would return, and Bitcoin would likely give back its recent gains.

Traders should also watch the Israeli response carefully. Tel Aviv’s exclusion from the MoU doesn’t mean Israel will stay quiet. Any unilateral action by Israel against Iranian nuclear facilities would instantly invalidate the market’s current optimism, regardless of what the MoU says on paper.

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