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U.S., Iran Deal Unlocks Strait of Hormuz, Easing Global Oil Crunch

The United States and Iran have reached a preliminary agreement to end their conflict and restore passage through the Strait of Hormuz, a waterway critical to global energy markets. The two nations will sign a memorandum of understanding June 19, which suspends sanctions on Iranian oil and releases $24 billion in frozen assets. Iran will lift its blockade within 30 days. The strait handles roughly one-fifth of worldwide crude oil supply. The conflict severely disrupted fertilizer and chemical shipments, prompting the Trump administration to temporarily suspend the Jones Act to allow foreign vessels to supply U.S. markets. Bunker fuel prices spiked due to reduced Persian Gulf production. Industry analysts caution that full operational normalization will require two to three months. Vessel rotation patterns must be reestablished and empty return logistics recalibrated. Additionally, thousands of naval mines must be cleared to ensure safe passage.