U.S.-Iran ceasefire expires, raising conflict risk

The 60-day memorandum of understanding between the United States and Iran, intended to end a months-long war and pave the way for a comprehensive peace deal, expired on Monday, August 17, 2026, with no agreement to extend it. The collapse of the diplomatic framework has heightened the risk of renewed open conflict and deepened uncertainty over the future of the Strait of Hormuz, a critical global oil and gas chokepoint.

The agreement, signed on June 17 by President Donald Trump and Iranian President Masoud Pezeshkian, was brokered with mediation from Pakistan and Qatar. It called for an immediate and permanent termination of military operations on all fronts, including in Lebanon, and set a 60-day window to negotiate a final deal endorsed by the United Nations Security Council. Under its terms, the U.S. was to lift its naval blockade within 30 days, terminate sanctions, issue waivers for Iranian oil exports, and unlock frozen Iranian assets. It also committed to a reconstruction package for Iran worth at least $300 billion. Iran, in turn, was to clear mines from the Strait of Hormuz, allow commercial ships to pass without charge for 60 days, and reaffirm its commitment not to...