US President Donald Trump and Iranian President Masoud Pezeshkian have signed an initial agreement designed to end the war between the two countries, marking a significant breakthrough after months of escalating tensions that threatened regional stability and global energy markets.
The memorandum of understanding, which took effect immediately after being signed on Wednesday, outlines a framework for ending hostilities and commits both sides to negotiating a final agreement within 60 days, a deadline that can be extended by mutual consent.
Trump signed a hard copy of the document late Wednesday during a state dinner hosted by French President Emmanuel Macron at the Palace of Versailles following meetings at the G7 summit in France.
The agreement, consisting of 14 core provisions, addresses some of the most contentious issues that fueled the conflict, including Iran’s nuclear programme, sanctions imposed by Washington, maritime security in the Gulf, and broader regional stability.
A central component of the deal is the reopening of the Strait of Hormuz, one of the world's most critical shipping lanes. Under the agreement, the US will begin dismantling its naval blockade, with the process expected to be completed within 30 days.
Iran, in turn, has committed to ensuring the safe passage of commercial vessels through the strategic waterway without imposing charges for at least 60 days.
The agreement also contains a commitment by Iran never to develop or acquire nuclear weapons.
According to senior US officials, Iran's stockpile of enriched uranium will be diluted under the supervision of the International Atomic Energy Agency (IAEA), a departure from earlier American demands that the material be removed entirely from Iranian territory.
In exchange, the US has agreed to terminate all economic sanctions imposed on Iran, a move that could have far-reaching implications for the country's economy and international trade.
Another major feature of the agreement is a proposed $300 billion reconstruction programme for Iran. While Trump had previously dismissed reports of such a fund as inaccurate, US officials confirmed that the reconstruction package is included in the memorandum.
They emphasized, however, that Washington would not directly finance the initiative and that implementation would depend on Iran's compliance with the agreement.
Despite the breakthrough, both sides have acknowledged deep mistrust remains.
Speaking at the G7 summit, Trump warned Iran against violating the agreement.
"If they don't comply, we'll bomb the hell out of them," he said.
Iranian parliament speaker Mohammad Bagher Ghalibaf, who played a key role in negotiating the agreement, responded by expressing continued skepticism toward Washington.
"Our finger is on the trigger," Ghalibaf told Iranian state media, adding that Iran remained wary of American intentions.
Questions also remain regarding the future management of the Strait of Hormuz. While the agreement guarantees toll-free passage for two months, Ghalibaf later stated that the waterway would not return to its pre-war status and suggested Iran could eventually charge fees for services provided to vessels using the route.
The memorandum indicates that Iran will work with Oman and other Gulf states to develop a broader long-term framework governing operations in the strait after the initial 60-day period expires.
The agreement further commits both countries to ending hostilities across the region, including in Lebanon. However, tensions remain fragile.
Iranian Foreign Ministry spokesperson Esmail Baghaei warned that continued Israeli military operations in Lebanon could be viewed as a violation of the agreement. His comments came after reports of fresh Israeli strikes in southern Lebanon, despite calls for restraint.
An official signing ceremony involving senior American and Iranian representatives had been expected in Switzerland on Friday, with US Vice-President JD Vance and Ghalibaf among those anticipated to attend.
It remains unclear whether that ceremony will proceed now that the memorandum has already been formally signed.
The initial agreement leaves several critical issues unresolved, particularly the long-term structure of Iran's nuclear programme and future security arrangements in the Gulf region. Those matters are expected to dominate the next phase of negotiations.
Trump indicated that the 60-day timetable should not be viewed as a rigid deadline.
"It could take longer," he told reporters when asked about prospects for a final settlement.
For now, the memorandum represents the most significant diplomatic breakthrough between Washington and Tehran in decades, offering a pathway toward ending a conflict that has shaken the Middle East and raised fears of a broader regional war.