The United States and Iran have signed an initial agreement aimed at ending the conflict between the two countries, with both governments committing to further negotiations over the coming months.
The memorandum of understanding was signed by US President Donald Trump during the G7 summit in France and later endorsed by Iranian President Masoud Pezeshkian, according to Iranian officials.
Under the agreement, the Strait of Hormuz is set to reopen, while both sides will enter a 60-day negotiation period focused on resolving outstanding issues surrounding Iran’s nuclear programme. The negotiation window may be extended by mutual consent.
The deal also outlines a proposed $300 billion reconstruction framework for Iran and includes plans for the removal of US sanctions. However, questions remain over how the reconstruction programme would be funded and implemented.
President Trump said the agreement would help prevent a global economic crisis caused by disruptions to energy markets. He warned that failure to reach a final settlement could result in renewed military action.
Iranian officials welcomed the agreement but stressed that they remain cautious in their dealings with Washington. Parliamentary Speaker Mohammad Bagher Ghalibaf said Iran’s trust in the United States remains limited despite the signing of the document.
The agreement states that Iran will not develop or acquire nuclear weapons and that its enriched uranium stockpile will be diluted under the supervision of the International Atomic Energy Agency (IAEA).
Energy markets reacted positively to the announcement, with oil prices easing after months of volatility linked to disruptions in the Strait of Hormuz, a key global shipping route.
Despite the breakthrough, the proposal has faced criticism from politicians in the United States. Some lawmakers questioned the reconstruction plan and argued that the agreement does not adequately address Iran’s regional influence, missile programme, and support for allied groups in the Middle East.
Negotiators from both countries are expected to continue talks in the coming weeks as they work toward a comprehensive peace settlement.
