EVIAN-LES-BAINS, France -UNS : U.S. President Donald Trump announced on Monday that a memorandum of understanding (MoU) aimed at ending the Gulf conflict has already been signed by the United States and Iran, with the full text expected to be released in the coming days.
Speaking upon arrival at the G7 summit in France, Trump said the agreement was complete and highlighted the partial reopening of the Strait of Hormuz, a key global shipping route that has faced months of disruption due to the conflict.
“The deal’s all signed. And the strait is already partially opened,” Trump told reporters.
An official signing ceremony is scheduled to take place on Friday in Geneva, Switzerland. Trump indicated that the details of the agreement would likely be made public shortly after the event.
The announcement has prompted calls for greater transparency in Washington. Senate Democratic Leader Chuck Schumer urged the administration to release the agreement and brief Congress on its contents, questioning what concessions had been made and how the arrangement would affect U.S. military personnel in the region.
Ceasefire and Negotiations:
According to officials familiar with the framework, the agreement establishes a ceasefire and provides for the reopening of the Strait of Hormuz. It also launches a 60-day negotiation period during which both sides will attempt to resolve outstanding disputes, including the future of Iran’s nuclear program.
U.S. officials maintain that economic incentives offered to Iran remain conditional on Tehran permanently abandoning any pursuit of nuclear weapons. Meanwhile, Vice President J.D. Vance suggested that Iran could eventually benefit from a reconstruction and development fund worth as much as $300 billion, financed in part by Gulf Arab states, if a final agreement is reached.
Iranian officials have welcomed the framework, arguing that it secures sanctions relief, access to frozen assets, and compensation for damage caused during the conflict.
Lebanon Remains a Major Challenge
Despite the announcement, tensions continue in Lebanon, where fighting between Israel and the Iran-backed Hezbollah movement has persisted alongside the broader regional conflict.
Shortly after the agreement was announced, an Israeli drone strike reportedly targeted a vehicle in southern Lebanon, raising concerns about the durability of the ceasefire framework.
Iranian Foreign Minister Abbas Araqchi stated that a complete halt to Israeli military operations in Lebanon is essential for the success of the agreement. Hezbollah also welcomed the deal, describing it as a step toward ending the conflict and protecting Lebanon’s interests.
Israeli officials, however, have expressed reservations. Defence Minister Israel Katz reiterated that Israeli forces would continue operating in parts of southern Lebanon to address security threats. Reports suggest senior figures within the Israeli government view the agreement unfavorably, arguing that it could strengthen Iran’s position in the region.
Economic Impact
Financial markets reacted positively to the prospect of a reduction in regional tensions. Oil prices declined sharply on expectations that energy exports and maritime trade through the Strait of Hormuz will normalize, while stock markets recorded significant gains.
The reopening of the strategic waterway is expected to ease pressure on global energy supplies and reduce concerns over prolonged disruptions to international oil markets.
While the agreement marks a significant diplomatic breakthrough, key issues—including Iran’s nuclear activities, regional security arrangements, and long-term sanctions relief—remain subject to further negotiations in the weeks ahead.
