The United States and Iran have signed a preliminary peace agreement designed to bring an end to the ongoing conflict, with key provisions taking effect immediately.
The deal includes the reopening of the Strait of Hormuz, a proposed $300 billion reconstruction framework for Iran, and a commitment by Washington to begin lifting all categories of sanctions imposed on Tehran. However, negotiations over Iran’s nuclear programme — a central issue behind the conflict — will continue for an initial 60-day period, with the option of extending talks if both sides agree.
US President Donald Trump signed the memorandum during the G7 summit in France, describing the agreement as a necessary step to prevent severe global economic disruption. While expressing optimism about the process, Trump warned that military action could resume if the two sides fail to reach a final settlement.
Iranian President Masoud Pezeshkian also endorsed the agreement, according to officials in Tehran. Despite the breakthrough, senior Iranian figures signaled continued caution toward the United States.
Parliament Speaker Mohammad Bagher Ghalibaf, who played a leading role in the negotiations, said Iran remained wary of Washington’s intentions and was prepared to respond if tensions escalated again.
“The nation remains vigilant and ready to act if necessary,” Ghalibaf said in remarks carried by state media.
The conflict began on February 28 when military operations launched by the United States and Israel targeted Iran, resulting in the deaths of Supreme Leader Ayatollah Ali Khamenei and several senior military officials. Since then, the war has had significant economic consequences, including higher energy prices and renewed inflation concerns.
A major source of disruption came from restrictions affecting the Strait of Hormuz, one of the world’s most important energy transit routes. Roughly one-fifth of global oil and liquefied natural gas shipments normally pass through the waterway.
Speaking to reporters during the G7 summit in Evian-les-Bains, Trump said the agreement would help prevent a broader economic crisis.
According to the memorandum, both countries have agreed to pursue a comprehensive settlement within 60 days. One of the key provisions states that Iran will not seek to acquire or develop nuclear weapons.
The agreement also outlines plans for Iran’s enriched uranium stockpiles to be diluted under the supervision of the International Atomic Energy Agency (IAEA), the United Nations’ nuclear watchdog. This represents a compromise from earlier US demands that the material be removed from Iranian territory.
For the next 60 days, ships passing through the Strait of Hormuz will not face transit charges. However, the agreement leaves open the possibility that fees could be introduced later.
Ghalibaf indicated that shipping conditions in the strait would likely differ from those that existed before the conflict, suggesting future charges may be considered after the temporary arrangement expires.
The agreement also calls for the immediate cessation of military operations across all fronts, including Lebanon. However, questions remain over implementation, as Israel has stated it does not intend to withdraw forces from Lebanon and has continued military actions against Hezbollah.
Trump acknowledged concerns over regional tensions and urged a more measured approach from Israeli Prime Minister Benjamin Netanyahu. He praised Netanyahu while also suggesting restraint could help preserve the diplomatic progress achieved with Iran.
The peace framework has generated intense debate in Washington. Critics from both major political parties have questioned several aspects of the proposal, particularly the reconstruction fund and its long-term implications.
Republican Senator Bill Cassidy described the agreement as a major foreign policy mistake, while Senator Ted Cruz raised concerns about the financial mechanisms connected to Iran’s rebuilding efforts.
US officials, however, insisted that American taxpayers would not directly fund the proposed reconstruction programme. They explained that international partners and private investments could contribute to projects in Iran if relations improve.
Trump also rejected claims that the United States would provide direct financial assistance to Tehran. At the same time, he argued that Iranian assets frozen during the conflict should eventually be returned, noting that the funds belong to Iran.
Democratic lawmakers were equally critical. Senator Jeanne Shaheen argued that the agreement fails to adequately address Iran’s missile capabilities and its relationships with regional armed groups, including Hezbollah.
According to Shaheen, the proposal falls short of several objectives that the US administration originally outlined when the conflict began.
Despite the criticism, both Washington and Tehran have committed to continuing negotiations in the coming weeks, with the goal of reaching a permanent agreement that could formally end the conflict and stabilize the region.
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