InternationalBusiness
ANALYSIS

United States and Iran sign Versailles memorandum to reopen Hormuz

The Versailles memorandum may reopen Hormuz, but its nuclear, sanctions and Lebanon clauses leave the hardest security questions unresolved.

Belgium Impulse Editorial·18 June 2026·2 min read·
Well established· 1 primary source + 1 official document + 2 independent reporting sources · Academic sources: 1

In 30 seconds

  • U.S. officials say the memorandum gives Washington and Tehran 60 days to negotiate a final deal.
  • Pakistani Prime Minister Shehbaz Sharif said Iran would reopen Hormuz and the U.S. would lift its naval blockade.
  • U.S. officials said sanctions relief is tied to future nuclear commitments, not granted fully at signing.
  • Iranian negotiator Mohammad Bagher Ghalibaf said Iran may charge ships after a 60-day toll-free period.

The

Place

Strait of Hormuz

energy chokepoint whose commercial traffic and safe passage the deal seeks to restore

Why it matters

energy chokepoint whose commercial traffic and safe passage the deal seeks to restore

About

The Strait of Hormuz is a waterway between the Persian Gulf and the Gulf of Oman. On the north coast lies Iran, and on the south coast lies the Musandam Peninsula under the Musandam Governorate of Oman, with a portion of the southwest of the peninsula under the United Arab Emirates (UAE). The strait is about 104 miles long, with a width varying from about 60 mi to 24 mi.

(the narrow
Place

Gulf

waterway area where Iran Air 655 was shot down

Why it matters

waterway area where Iran Air 655 was shot down

About

Gulf Province is a province of Papua New Guinea located on the southern coast. The provincial capital is Kerema. The 34,472 km2 province is dominated by mountains, lowland river deltas, and grassland flood plains. In Gulf Province, the Kikori, Turama, Purari, and Vailala rivers meet the Papuan Gulf. The province has the second-smallest population of all the provinces of Papua New Guinea with 106,898 inhabitants.

waterway between
Institution

Iran

party that signed the memorandum and is required to restore safe passage through the Strait of Hormuz

Why it matters

party that signed the memorandum and is required to restore safe passage through the Strait of Hormuz

About

Iran, officially the Islamic Republic of Iran, historically known as Persia, is a country in West Asia. It borders Iraq to the west, Turkey, Azerbaijan, and Armenia to the northwest, the Caspian Sea to the north, Turkmenistan to the northeast, Afghanistan to the east, Pakistan to the southeast, and the Gulf of Oman and the Persian Gulf to the south. With a population of over 92 million, Iran ranks 17th globally in both geographic size and population.

and
Place

Oman

country bordering the Strait of Hormuz

Why it matters

country bordering the Strait of Hormuz

About

Oman, officially the Sultanate of Oman, is a country in the southeastern Arabian Peninsula in West Asia. It shares land borders with Saudi Arabia, the United Arab Emirates, and Yemen, while also sharing maritime borders with Iran and Pakistan. Oman's coastline faces the Arabian Sea to the southeast and the Gulf of Oman on the northeast.

) is one of the world’s most important energy chokepoints.
Person

Donald Trump

U.S. president who signed the memorandum for Washington

Why it matters

U.S. president who signed the memorandum for Washington

About

Donald John Trump is an American politician, media personality, and businessman who is the 47th president of the United States. A member of the Republican Party, he served as the 45th president from 2017 to 2021.

(U.S. president, returned to office in 2025) signed the memorandum for
Place

Washington

given 60 days with Tehran to negotiate a final settlement

Why it matters

given 60 days with Tehran to negotiate a final settlement

About

Washington is a state in the Pacific Northwest region of the United States. It is often referred to as Washington state to distinguish it from the national capital; both are named after George Washington, a U.S. Founding Father and the first U.S. president. Washington borders the Pacific Ocean to the west, Oregon to the south, and Idaho to the east; it shares an international border with the Canadian province of British Columbia to the north.

.
Person

Masoud Pezeshkian

Iranian president representing Tehran’s civilian government

Why it matters

Iranian president representing Tehran’s civilian government

About

Masoud Pezeshkian is an Iranian politician and heart surgeon who has served as the ninth president of Iran since 2024. A member of the reformist faction, he is the oldest person to serve in this position, taking office at the age of 69.

(Iranian president since 2024) represents
Place

Tehran

given 60 days with Washington to negotiate a final settlement

Why it matters

given 60 days with Washington to negotiate a final settlement

About

Tehran is the capital and largest city of Iran. It is also the capital of Tehran province and the administrative center for Tehran County and its Central District. With a population of around 9 million in the city, and 16.8 million in the metropolitan area, Tehran is the most populous city in Iran and West Asia, the largest metropolitan area in the Middle East and the 24th-most-populous metropolitan area in the world.

’s civilian government, while
Person

Mohammad Bagher Ghalibaf

speaker of Iran’s parliament and chief negotiator in the current talks

Why it matters

speaker of Iran’s parliament and chief negotiator in the current talks

About

Mohammad Bagher Ghalibaf is an Iranian politician, pilot, and former Islamic Revolutionary Guard Corps (IRGC) brigadier general, who has served as Speaker of the Parliament of Iran since 2020. As of April 2026, he has been described as handling the strategic matters of Iran.

(speaker of Iran’s parliament and chief negotiator in the current talks) has shaped Iran’s public position.
Person

Emmanuel Macron

French president who hosted the Versailles signing moment during G7 diplomacy

Why it matters

French president who hosted the Versailles signing moment during G7 diplomacy

About

Emmanuel Jean-Michel Frédéric Macron is a French politician who has served as President of France since 2017. He has been a member of Renaissance since founding the party in 2016. Macron previously served as Deputy Secretary-General to the President from 2012 to 2014 and Minister of Economics and Finance from 2014 to 2016 under President François Hollande.

(French president since 2017) hosted the Versailles signing moment during G7 diplomacy.
Person

Shehbaz Sharif

Pakistan’s prime minister presenting Pakistan as a mediator

Why it matters

Pakistan’s prime minister presenting Pakistan as a mediator

About

Mian Muhammad Shehbaz Sharif is a Pakistani politician and businessman who has served as the prime minister of Pakistan since 2024, having previously been in the role between 2022 and 2023. He has also served as the president of the Pakistan Muslim League (N) and chief minister of Punjab three times, spanning over 12 years, making him the longest-serving person in the role.

(
Institution

Pakistan

presented as a mediator

Why it matters

presented as a mediator

About

Pakistan, officially the Islamic Republic of Pakistan, is a country in South Asia. It is the fifth-most populous country, with a population of over 241.5 million, having the second-largest Muslim population in the world as of 2023. Islamabad is the nation's capital, while Karachi is its largest city and financial centre. Pakistan is the 33rd-largest country by area.

’s prime minister) has presented Pakistan as a mediator. The
Institution

International Atomic Energy Agency

UN nuclear watchdog that would supervise any uranium dilution

Why it matters

UN nuclear watchdog that would supervise any uranium dilution

About

The International Atomic Energy Agency (IAEA) is an intergovernmental organization that seeks to promote the peaceful use of nuclear energy and to inhibit its use for any military purpose, including nuclear weapons.

, or
Institution

IAEA

abbreviation for the International Atomic Energy Agency

Why it matters

abbreviation for the International Atomic Energy Agency

About

The International Atomic Energy Agency (IAEA) is an intergovernmental organization that seeks to promote the peaceful use of nuclear energy and to inhibit its use for any military purpose, including nuclear weapons.

(the UN nuclear watchdog based in
Place

Vienna

base of the International Atomic Energy Agency

Why it matters

base of the International Atomic Energy Agency

About

Vienna is the capital, most populous city, and one of the nine states of Austria. It is Austria's primate city, with just over two million inhabitants. Its larger metropolitan area has a population of nearly 2.9 million, representing nearly one-third of the country's population.

), would supervise any uranium dilution. Hezbollah (Iran-backed Lebanese armed movement and political party) is central because the memorandum’s ceasefire language refers to Lebanon. The G7 (Canada, France, Germany, Italy, Japan, the UK, the U.S. and the EU) has backed implementation while seeking broader constraints on Iran.

Background

The EIA’s 2012 analysis described Hormuz as the world’s most important oil transit chokepoint and said 2011 flows were almost 17 million barrels per day, about 35% of seaborne traded oil. The waterway has repeatedly been a flashpoint: U.S. forces escorted tankers during the 1987-1988 Tanker War, U.S. naval forces shot down Iran Air 655 over the Gulf in 1988, and Iran has periodically threatened closure during nuclear and sanctions crises. The 2015 JCPOA nuclear agreement offered sanctions relief for nuclear limits, but the United States withdrew in 2018, weakening the framework that European governments had tried to preserve.

The wider picture

The memorandum tests whether energy security can force a diplomatic reset after military escalation. It also shows a shift from multilateral Iran diplomacy toward a narrower U.S.-Iran transaction, with Europe seeking influence from the outside. China, Gulf states, Israel and Lebanon all sit in the background because Hormuz, oil exports and Hezbollah are linked in the deal’s consequences.

Why now

The immediate trigger is the signing and public circulation of the memorandum during G7 diplomacy, after months of conflict and pressure to reopen Hormuz. Markets and governments now need to know whether the document is an enforceable pause or only the start of another bargaining round.

Context & what happens next

What to watch

Watch the Switzerland meeting, any publication of the memorandum text, shipping volumes through Hormuz, U.S. Treasury waiver details, IAEA access arrangements, Iran’s position on post-60-day fees, and Israeli or Hezbollah actions that could test the Lebanon clause.

What to do

Belgian readers should not expect instant normalisation at the pump or on energy bills. The practical signal is direction rather than certainty: if tankers resume and insurers return, price pressure should ease; if implementation stalls, businesses and households should expect renewed volatility in fuel, gas and freight-linked costs.

How we got here

  1. 2015-07-14

    Iran and world powers agreed the JCPOA nuclear deal.

  2. 2018-05-08

    The United States withdrew from the JCPOA.

  3. 2026-06-17

    U.S. officials and public statements indicated the United States and Iran had signed the memorandum.

  4. 2026-06-18

    Video of the Versailles signing circulated as G7 diplomacy focused on implementation.

  5. 2026-08-16

    The 60-day negotiation period would expire around this date if counted from 17 June, unless extended by mutual consent.

Evidence
Well established · 1 primary source + 1 official document + 2 independent reporting sources · Academic sources: 1
Explore evidence
Euronews France, “Vidéo : la signature de l'accord américano-iranien à Versailles”
Published:
18 Jun 2026, 02:00
Retrieved by ODIN:
18 Jun 2026
Read original
Axios, “U.S. and Iran sign deal ahead of schedule”
Published:
17 Jun 2026, 02:00
Retrieved by ODIN:
18 Jun 2026
Read original
The Guardian, “US-Iran deal takeaways: reopening the strait of Hormuz, waived oil sanctions and Lebanon”
Published:
17 Jun 2026, 02:00
Retrieved by ODIN:
18 Jun 2026
Read original
The Guardian, “Trump signs Iran peace plan, claiming deal averts ‘worldwide depression’”
Published:
17 Jun 2026, 02:00
Retrieved by ODIN:
18 Jun 2026
Read original
U.S. Energy Information Administration, “The Strait of Hormuz is the world's most important oil transit chokepoint”
Published:
4 Jan 2012, 01:00
Retrieved by ODIN:
18 Jun 2026
Read original
Caitlin Talmadge, “Closing Time: Assessing the Iranian Threat to the Strait of Hormuz”, International Security, 2008
Published:
1 Jul 2008, 02:00
Retrieved by ODIN:
18 Jun 2026
Read original
The Guardian, “Donald Trump's Iran deal met with anger, relief and incredulity”
Published:
18 Jun 2026, 02:00
Retrieved by ODIN:
18 Jun 2026
Read original

Voices & reactions

What the main actors are doing

Reported positions, summarised — not direct quotations

Trump administration / U.S. officials

U.S. officials frame the memorandum as a practical off-ramp: reopen Hormuz, stop the shooting, and use the 60-day window to turn a battlefield stalemate into nuclear negotiations. In that reading, immediate oil waivers are not a surrender of leverage but the price of preventing a wider economic shock.

Iranian negotiators / Tehran

Mohammad Bagher Ghalibaf’s public line presents the document as proof that U.S. pressure failed. Tehran’s strongest argument is that Iran kept enrichment and sovereignty questions on the table, avoided shipping its uranium abroad at this stage, and forced Washington to discuss sanctions relief and Hormuz access rather than dictating surrender terms.

European G7 governments

European G7 governments welcome the reopening of Hormuz because it relieves energy and inflation pressure, but their strongest concern is that the memorandum leaves missiles and regional armed groups unresolved. Their frame is implementation first, then a broader follow-on agreement covering Iran’s nuclear, ballistic and regional activity.

Israel and U.S. hardliners

Israeli leaders and U.S. hardliners see the bargain as too permissive because Iran receives early economic benefits while retaining bargaining room on enrichment, missiles and regional allies. Their strongest argument is that the deal may stabilise markets while weakening deterrence if verification and enforcement are not clarified quickly.

The story, connected

Explore the people, places and ideas in this story

Go beyond the headline. Open a card for sourced context, maps, official links and the other subjects connected to this report.

Organisations

United States

party that signed the memorandum and withdrew from the JCPOA in 2018

In this story

party that signed the memorandum and withdrew from the JCPOA in 2018

Background

The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic consisting of 50 states and a federal capital district, Washington, D.C. The 48 contiguous states border Canada to the north and Mexico to the south, with the semi-exclave of Alaska in the northwest and the archipelago of Hawaii in the Pacific Ocean.

Organisations

Iran

party that signed the memorandum and is required to restore safe passage through the Strait of Hormuz

In this story

party that signed the memorandum and is required to restore safe passage through the Strait of Hormuz

Background

Iran, officially the Islamic Republic of Iran, historically known as Persia, is a country in West Asia. It borders Iraq to the west, Turkey, Azerbaijan, and Armenia to the northwest, the Caspian Sea to the north, Turkmenistan to the northeast, Afghanistan to the east, Pakistan to the southeast, and the Gulf of Oman and the Persian Gulf to the south. With a population of over 92 million, Iran ranks 17th globally in both geographic size and population.

Concepts

Versailles memorandum

preliminary memorandum intended to end the conflict and reopen Hormuz

In this story

preliminary memorandum intended to end the conflict and reopen Hormuz

Places

Hormuz

waterway the memorandum is intended to reopen

In this story

waterway the memorandum is intended to reopen

Background

Hormuz is a city on Hormuz Island and the capital of Hormuz District, Bandar Abbas County, Hormozgan province, Iran.

Places

Strait of Hormuz

energy chokepoint whose commercial traffic and safe passage the deal seeks to restore

In this story

energy chokepoint whose commercial traffic and safe passage the deal seeks to restore

Background

The Strait of Hormuz is a waterway between the Persian Gulf and the Gulf of Oman. On the north coast lies Iran, and on the south coast lies the Musandam Peninsula under the Musandam Governorate of Oman, with a portion of the southwest of the peninsula under the United Arab Emirates (UAE). The strait is about 104 miles long, with a width varying from about 60 mi to 24 mi.

Organisations

U.S.

party to the Iran bargain and member of the G7

In this story

party to the Iran bargain and member of the G7

Background

The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic consisting of 50 states and a federal capital district, Washington, D.C. The 48 contiguous states border Canada to the north and Mexico to the south, with the semi-exclave of Alaska in the northwest and the archipelago of Hawaii in the Pacific Ocean.

Places

Washington

given 60 days with Tehran to negotiate a final settlement

In this story

given 60 days with Tehran to negotiate a final settlement

Background

Washington is a state in the Pacific Northwest region of the United States. It is often referred to as Washington state to distinguish it from the national capital; both are named after George Washington, a U.S. Founding Father and the first U.S. president. Washington borders the Pacific Ocean to the west, Oregon to the south, and Idaho to the east; it shares an international border with the Canadian province of British Columbia to the north.

Places

Tehran

given 60 days with Washington to negotiate a final settlement

In this story

given 60 days with Washington to negotiate a final settlement

Background

Tehran is the capital and largest city of Iran. It is also the capital of Tehran province and the administrative center for Tehran County and its Central District. With a population of around 9 million in the city, and 16.8 million in the metropolitan area, Tehran is the most populous city in Iran and West Asia, the largest metropolitan area in the Middle East and the 24th-most-populous metropolitan area in the world.

Places

Lebanon

covered by the text and referenced in the memorandum’s ceasefire language

In this story

covered by the text and referenced in the memorandum’s ceasefire language

Background

Lebanon, officially the Lebanese Republic, is a country in the Levant region of West Asia. Situated at the crossroads of the Mediterranean Basin and the Arabian Peninsula, it is bordered by Syria to the north and east, Israel to the south, and the Mediterranean Sea to the west; Cyprus lies a short distance from the coastline. Lebanon has a population of more than five million and an area of 10,452 square kilometres (4,036 sq mi).

Organisations

Israel

not a party to the memorandum

In this story

not a party to the memorandum

Background

Israel, officially the State of Israel, is a country in the Southern Levant region of West Asia. It is bordered by Lebanon to the north, Syria to the northeast, Jordan to the east, and Egypt to the southwest. Israel's western coast lies on the Mediterranean Sea, its southern tip reaches the Red Sea, and to the east is Earth's lowest point near the Dead Sea.

Places

Gulf

waterway area where Iran Air 655 was shot down

In this story

waterway area where Iran Air 655 was shot down

Background

Gulf Province is a province of Papua New Guinea located on the southern coast. The provincial capital is Kerema. The 34,472 km2 province is dominated by mountains, lowland river deltas, and grassland flood plains. In Gulf Province, the Kikori, Turama, Purari, and Vailala rivers meet the Papuan Gulf. The province has the second-smallest population of all the provinces of Papua New Guinea with 106,898 inhabitants.

Places

Oman

country bordering the Strait of Hormuz

In this story

country bordering the Strait of Hormuz

Background

Oman, officially the Sultanate of Oman, is a country in the southeastern Arabian Peninsula in West Asia. It shares land borders with Saudi Arabia, the United Arab Emirates, and Yemen, while also sharing maritime borders with Iran and Pakistan. Oman's coastline faces the Arabian Sea to the southeast and the Gulf of Oman on the northeast.

People

Donald Trump

U.S. president who signed the memorandum for Washington

In this story

U.S. president who signed the memorandum for Washington

Background

Donald John Trump is an American politician, media personality, and businessman who is the 47th president of the United States. A member of the Republican Party, he served as the 45th president from 2017 to 2021.

People

Masoud Pezeshkian

Iranian president representing Tehran’s civilian government

In this story

Iranian president representing Tehran’s civilian government

Background

Masoud Pezeshkian is an Iranian politician and heart surgeon who has served as the ninth president of Iran since 2024. A member of the reformist faction, he is the oldest person to serve in this position, taking office at the age of 69.

People

Mohammad Bagher Ghalibaf

speaker of Iran’s parliament and chief negotiator in the current talks

In this story

speaker of Iran’s parliament and chief negotiator in the current talks

Background

Mohammad Bagher Ghalibaf is an Iranian politician, pilot, and former Islamic Revolutionary Guard Corps (IRGC) brigadier general, who has served as Speaker of the Parliament of Iran since 2020. As of April 2026, he has been described as handling the strategic matters of Iran.

People

Emmanuel Macron

French president who hosted the Versailles signing moment during G7 diplomacy

In this story

French president who hosted the Versailles signing moment during G7 diplomacy

Background

Emmanuel Jean-Michel Frédéric Macron is a French politician who has served as President of France since 2017. He has been a member of Renaissance since founding the party in 2016. Macron previously served as Deputy Secretary-General to the President from 2012 to 2014 and Minister of Economics and Finance from 2014 to 2016 under President François Hollande.

Organisations

G7

group backing implementation while seeking broader constraints on Iran

In this story

group backing implementation while seeking broader constraints on Iran

Background

The Group of Seven (G7) is an intergovernmental political and economic forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States; additionally, the European Union (EU) is a "non-enumerated member". It is organized around the shared values of pluralism, liberal democracy, and representative government. G7 members are major IMF advanced economies.

People

Shehbaz Sharif

Pakistan’s prime minister presenting Pakistan as a mediator

In this story

Pakistan’s prime minister presenting Pakistan as a mediator

Background

Mian Muhammad Shehbaz Sharif is a Pakistani politician and businessman who has served as the prime minister of Pakistan since 2024, having previously been in the role between 2022 and 2023. He has also served as the president of the Pakistan Muslim League (N) and chief minister of Punjab three times, spanning over 12 years, making him the longest-serving person in the role.

Organisations

Pakistan

presented as a mediator

In this story

presented as a mediator

Background

Pakistan, officially the Islamic Republic of Pakistan, is a country in South Asia. It is the fifth-most populous country, with a population of over 241.5 million, having the second-largest Muslim population in the world as of 2023. Islamabad is the nation's capital, while Karachi is its largest city and financial centre. Pakistan is the 33rd-largest country by area.

Organisations

International Atomic Energy Agency

UN nuclear watchdog that would supervise any uranium dilution

In this story

UN nuclear watchdog that would supervise any uranium dilution

Background

The International Atomic Energy Agency (IAEA) is an intergovernmental organization that seeks to promote the peaceful use of nuclear energy and to inhibit its use for any military purpose, including nuclear weapons.

Organisations

IAEA

abbreviation for the International Atomic Energy Agency

In this story

abbreviation for the International Atomic Energy Agency

Background

The International Atomic Energy Agency (IAEA) is an intergovernmental organization that seeks to promote the peaceful use of nuclear energy and to inhibit its use for any military purpose, including nuclear weapons.

Organisations

UN

body associated with the nuclear watchdog

In this story

body associated with the nuclear watchdog

Background

The United Nations (UN) is an international intergovernmental organization established by the signing of the Charter of the United Nations on 26 June 1945 with the articulated mission of maintaining international peace and security, to develop friendly relations among states, to promote international cooperation, and to serve as a centre for harmonizing the actions of states in achieving those goals.

Places

Vienna

base of the International Atomic Energy Agency

In this story

base of the International Atomic Energy Agency

Background

Vienna is the capital, most populous city, and one of the nine states of Austria. It is Austria's primate city, with just over two million inhabitants. Its larger metropolitan area has a population of nearly 2.9 million, representing nearly one-third of the country's population.

Organisations

Hezbollah

Iran-backed Lebanese armed movement and political party central to the Lebanon ceasefire language

In this story

Iran-backed Lebanese armed movement and political party central to the Lebanon ceasefire language

Background

Hezbollah is a Lebanese Shia Islamist political party with an active paramilitary wing whose military and security activities have been prohibited by the Lebanese government since March 2026, amid Israel's war on Lebanon. Hezbollah's paramilitary wing is the Jihad Council, and its political wing is the Loyalty to the Resistance Bloc party in the Lebanese Parliament. Its armed strength was assessed to be equivalent to that of a medium-sized army in 2016.

Organisations

EIA

produced a 2012 analysis describing Hormuz as the world’s most important oil transit chokepoint

In this story

produced a 2012 analysis describing Hormuz as the world’s most important oil transit chokepoint

Background

The enzyme-linked immunosorbent assay (ELISA) is a commonly used analytical biochemistry assay, first described by Eva Engvall and Peter Perlmann in 1971. The assay is a solid-phase type of enzyme immunoassay (EIA) to detect the presence of a ligand in a liquid sample using antibodies directed against the ligand to be measured.

Concepts

Tanker War

1987-1988 conflict during which U.S. forces escorted tankers

In this story

1987-1988 conflict during which U.S. forces escorted tankers

Background

The tanker war, part of the larger Iran–Iraq War, was a series of military attacks by Iran and Iraq against merchant vessels in the Persian Gulf and Strait of Hormuz from 1981 to 1988. Iraq was responsible for 283 attacks. Iran accounted for 168.

Concepts

JCPOA

2015 nuclear agreement that offered sanctions relief for nuclear limits

In this story

2015 nuclear agreement that offered sanctions relief for nuclear limits

Background

The Joint Comprehensive Plan of Action, more commonly known as the Iran nuclear deal or Iran deal, was an agreement to limit the Iranian nuclear program in return for sanctions relief and other provisions. The agreement was finalized in Vienna on 14 July 2015, between Iran and the P5+1 together with the European Union.

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