The United States dropped its naval blockade of Iranian ports and coastal areas after the two countries signed a deal to end the war in the Middle East, according to a report from BBC News. US Central Command confirmed the end of the blockade and said some US vessels would remain in the general area.
Iran's Supreme Leader Mojtaba Khamenei said he had approved the deal with the United States despite having a different view, and that President Trump had used all kinds of leverage to bring the agreement about. Khamenei said that while in-person negotiations would take place in the future, that would not mean acceptance of the enemy's position. The supreme leader has not been seen in public since he took office in March, the BBC reported.
The June 2026 Memorandum of Understanding known as the Islamabad Memorandum called for a halt to all military operations and set a 60-day deadline for an agreement to permanently end the war, according to the Associated Press. The Associated Press reported that the deal collapsed weeks later, with no permanent agreement reached.
The market for whether the United States officially announces the end of the blockade by August 31 currently sits at 4.5%, with about $2.5 million total volume traded on the question. The resolution hinges on whether the announcement from an authorized US government representative meets the contract's criteria, including that some restrictions could remain.
The next question is the exact wording of any official US statement, which will determine whether the blockade is considered fully lifted or subject to remaining conditions under the contract's rules.
