Trump says US-Iran peace deal is expected to be signed Sunday, with immediate reopening of the Strait of Hormuz to global energy shipping
US President Donald Trump announced on Saturday 13 June 2026 that a peace agreement between the United States and Iran is scheduled for formal signing on Sunday 14 June, following more than 100 days of war. Trump stated via Truth Social that the Strait of Hormuz — the narrow waterway between the Persian Gulf and the Gulf of Oman through which a critical proportion of the world's crude oil and liquefied natural gas (LNG) passes — will be reopened to all shipping immediately upon signing. Pakistani Prime Minister Shehbaz Sharif confirmed the deal is expected within 24 hours and that Pakistan is preparing for an electronically signed agreement followed by technical-level talks the following week. Two independent sources corroborate the announcement. The terms reported by Reuters indicate that the US would immediately unfreeze billions of dollars in Iranian assets and lift oil sanctions in exchange for reopening the Strait, with a 60-day delay on discussions about Iran's nuclear programme. Trump denied that the deal favoured Iran, and Vice President JD Vance stated no frozen assets would be released merely for signing. The Strait of Hormuz is the world's most strategically significant oil chokepoint — its closure since the outbreak of hostilities has contributed to elevated global energy prices and disrupted LNG supply chains, with direct knock-on effects for European energy security and UK wholesale gas markets. An immediate reopening would substantially reduce energy market risk premia and ease the headwinds on UK economic growth that have featured in recent macroeconomic commentary.
Why this matters
If signed as announced, the deal would be the most consequential geopolitical event for global energy markets in 2026, directly affecting oil and gas pricing, sanctions-related contract force majeure (a contractual clause excusing performance due to extraordinary events) analysis, and asset-freezing orders affecting Iranian counterparties. For energy and infrastructure lawyers, the immediate questions are: which Iranian oil and LNG contracts can resume, what is the sanctions-lifting timetable, and what condition have assets been in during the freeze. UK and European energy companies with exposure to Middle East supply chains will need rapid sanctions compliance advice. The 60-day deferral on nuclear discussions means legal uncertainty persists, and a deal collapse — which Trump himself acknowledged as a risk — would re-activate all prior legal positions.
On the Ground
A trainee on an energy or sanctions matter triggered by this development would be drafting regulatory filing coordination notes and preparing sanctions screening memos identifying which Iranian counterparties and asset classes are affected by the proposed sanctions lift, cross-referencing against current UK and EU sanctions lists.
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“If you were advising a European LNG buyer whose long-term supply contract with an Iranian producer was suspended under sanctions, what steps would you advise it to take in the 48 hours following a confirmed sanctions lift?”
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