On June 18, 2026, President Trump and Iran's leader signed a preliminary agreement that ended a three-month conflict between their countries, Reuters reports. The deal pauses the fighting, reopens a vital shipping route for oil, lifts some financial penalties on Iran, and promises economic aid if both sides can strike a permanent nuclear agreement within 60 days, CBS News says.

What the Agreement Includes

The immediate steps are straightforward. Fighting stops. The Strait of Hormuz—a narrow waterway where about one-fifth of the world's oil travels—reopens. The U.S. also releases billions of dollars in Iranian money that had been frozen during the conflict. These changes are effective right away.

On nuclear matters, AP News reports that Iran must thin out its supply of highly enriched uranium. Think of it this way: uranium can be enriched to different levels, like gradually increasing the strength of a substance. Iran had enriched uranium to 60 percent strength, which gets dangerously close to 90 percent—the level needed to make nuclear weapons. By diluting its stockpile, Iran would need much longer to reach weapons-grade material. The deal gives both sides 60 days to finalize a lasting agreement, which is fast for international negotiations that usually take years.

The U.S. is also offering Iran $300 billion in economic support, CNBC reports. This is the largest financial package the U.S. has ever offered Iran in negotiations. The exact details of how the money would be delivered—through unfrozen assets, new investments, or infrastructure projects—have not been fully explained.

Why This Deal Happened Now

The U.S. applied pressure from multiple directions. The Trump administration had given Iran a 60-day deadline to agree, the State Department stated. After military strikes in June 2025, both sides had already paused fighting to allow talks, which created the opening for this agreement, the State Department's Legal Adviser explained.

At the same time, the U.S. imposed more financial penalties on Iran—targeting smuggling networks and illegal financing on June 2 and 5. On June 10, the U.S. and allies in Europe and Australia publicly called out Iran for cyber attacks and spying. These actions ran alongside the negotiating table: carrots and sticks working together. The U.S. was simultaneously managing talks between Israel and Lebanon on June 2 and 3, the State Department announced, handling multiple crises at once.

Not Everyone Is Happy

The agreement has critics. Some U.S. lawmakers from the Republican party publicly opposed the deal, Reuters reported, objecting to releasing Iranian money and the large economic package. This mirrors the backlash that met an earlier Iran nuclear deal in 2015, though opposition back then was stronger across both parties.

Countries in the Middle East that had sided against Iran—including Saudi Arabia and Israel—now have to rethink their strategies if a final deal takes hold. The reopening of the Strait of Hormuz is significant for global oil prices. When it was closed during the fighting, oil became more expensive worldwide. Keeping it open matters, but only if Iran actually follows through.

The next two months are crucial. This agreement is a statement of intent, not yet a final contract. What it does accomplish is stopping the shooting and getting both sides to negotiate seriously for 60 days. Whether they actually reach a lasting nuclear deal depends on choices leaders in Tehran and Washington make in the weeks ahead.