US-Iran Deal Allows Tehran to Immediately Sell Oil, Reopen Hormuz

The US has agreed to let Iran immediately resume selling oil and fuel on global markets as part of a memorandum of understanding aimed at ending the US-Israeli war with Iran. The framework, signed this week, also reopens the Strait of Hormuz and starts a 60-day clock for a broader nuclear deal.

What the agreement actually does

President Donald Trump said he signed an agreement with Iran Wednesday that U.S. officials say calls for Tehran to dilute its stockpile of highly enriched uranium and waive sanctions on the country, immediately allowing Iran to sell its oil freely in a major concession from Washington.

The U.S. is expected to lift sanctions on Iran and unfreeze funds and assets linked to the country’s regime under the 14-point memorandum of understanding. It will also allow Tehran to immediately sell its oil freely.

Pakistani Prime Minister Shehbaz Sharif, who helped mediate the deal to end the war, said it is taking ‘immediate effect’ after leaders from both countries signed it, but that there will still be a formal signing ceremony on Friday.

Strait of Hormuz reopens

The MOU stipulates that the Strait of Hormuz will reopen, with Iran agreeing to allow ‘safe passage of commercial vessels with no charge for 60 days only,’ followed by negotiations with Oman to ‘define the future administration’ of the vital trade route, through which some 20% of the world’s oil passed before the war.

A senior US official told CNN that Iran cannot access any benefits of the framework agreement unless the strait remains open and Tehran abides by the other points it agreed to. The official said the US would wind down its blockade in proportion with Iran restoring traffic in the strait.

Do you want to see how to make more plays? Do you want to find gains yourself?

Unusual Whales helps you find market opportunities through our market tide, historical options flow, GEX, and much, much more.

Create a free account here to start conquering the market with Unusual Whales.

Why this matters for oil markets

The Islamic Republic’s oil export revenues in 2024 were more than $46 billion. Its main buyer of oil, China, is believed to have bought at below-market prices because of its willingness to ignore the sanctions. Bringing Iranian barrels back onto the open market, at market prices, adds incremental supply at a time when traders had been pricing in a Hormuz disruption premium.

Granting oil waivers at the start of the 60-day talks strips the U.S. of a major point of leverage. Only at the conclusion of the overall deal in 2015 were sanctions on Iran’s oil lifted.

The political risk to the deal

It opens a two-month period for nuclear negotiations and appears to offer Iran several benefits up front while extracting little in return. That is likely to face pushback in Washington and in Israel.

The accord likely will draw intense opposition in Washington, and it appears to be a major setback for Israeli Prime Minister Benjamin Netanyahu, who has come under criticism at home from the media, his opponents and even some allies as details emerge.

Options market and stocks to watch

Watch USO and BNO for the most direct reaction to additional Iranian barrels and a reopened Hormuz, with crude pricing in less geopolitical risk premium.

Watch the majors — XOM, CVX, and OXY — where a softer crude tape could compress upstream margins, even as midstream and refined-product flows normalize.

Also watch defense names like LMT and RTX, which had been bid on Middle East escalation and could see that premium unwind if the ceasefire holds. For ongoing coverage, see our latest market news.

Want more market intelligence? Create your free Unusual Whales account for options flow, market tide, GEX, and the full toolkit.