US says Strait of Hormuz will be toll-free under Iran deal

US says Hormuz to be toll-free under Iran deal. File photo

| Published June, 16 2026 | Updated

Washington (Web Desk): US says Hormuz to be toll-free under Iran deal as Washington outlines a new agreement aimed at easing tensions and reopening key sea routes.

The United States has stated that ships will be permitted to transit the Strait of Hormuz without tolls under a new peace agreement with Iran, signed by President Donald Trump. Officials say the deal is designed to ease tensions and restore global shipping routes.

However, US officials stressed that Iran must first meet its commitments before receiving any economic benefits. They said financial support, including a possible $300 billion reconstruction package, will depend on Iran’s performance.

According to officials, the memorandum of understanding was signed electronically by Donald Trump, US Vice President JD Vance, and Iranian Parliament Speaker Mohammad Bagher Ghalibaf. The signing is expected to be followed by a formal ceremony in Geneva.

The agreement is only a broad framework for now, with key issues, especially Iran’s nuclear programme, still to be negotiated in detail during upcoming technical talks. US officials said JD Vance will lead these negotiations, while other senior officials, including Jared Kushner and Middle East envoy Steve Witkoff, are also expected to take part.

President Trump said the full text of the agreement will be made public soon, while officials said it could be released within 24 to 48 hours. Under the plan, a 60-day negotiation period will begin to work out a final peace deal. One of the top priorities is reopening the Strait of Hormuz, which is crucial for global oil shipments.

Also Read: Five Iranian ships pass Strait of Hormuz after US blockade lift

Vance said there is an understanding that the strait will reopen in a toll-free way, although technical details still need to be finalized. Trump also said the route should be fully open, but added that de-mining operations are still underway.

Officials expect shipping traffic to return to normal levels within weeks, although they noted that activity has already started increasing. However, Iran’s foreign ministry said the agreement allows it to charge maritime service fees instead of traditional tolls, indicating that differences in interpretation still exist.

The US side also confirmed that no frozen Iranian funds have been released so far. Officials said any financial relief, including sanctions easing and reconstruction funding, will depend on Iran’s compliance with the agreement.