PARIS/TEHRAN: The United States and Iran have signed a preliminary agreement aimed at ending months of conflict involving the US, Israel and Iran, marking a significant diplomatic breakthrough. However, key details of the accord remain undisclosed, and officials from both countries have emphasized that negotiations for a permanent peace settlement are still ongoing.
US President Donald Trump announced on Monday that the agreement had been finalized, describing it as an important step toward ending the war that has destabilized the Middle East and disrupted global energy markets.
“The deal’s all signed,” Trump told reporters after arriving in France for the G7 Summit. He added that US Vice President JD Vance is expected to attend a formal signing ceremony in Geneva on Friday.
The memorandum of understanding extends the fragile ceasefire first announced in April by an additional 60 days and paves the way for the reopening of the strategically important Strait of Hormuz, through which nearly one-fifth of the world’s oil trade passes. The waterway had effectively been blocked following military strikes launched by the United States and Israel against Iran earlier this year.
Following news of the agreement, international oil prices fell sharply, reaching their lowest levels since March, as markets responded positively to the prospect of restored energy flows through the Gulf.
Despite the breakthrough, significant challenges remain unresolved. Negotiators are expected to use the next 60 days to address critical issues, including the future of Iran’s nuclear program, sanctions relief, regional security concerns, and freedom of navigation in the Strait of Hormuz.
Iranian President Masoud Pezeshkian welcomed the agreement, calling it an “important step” toward ending hostilities. However, he cautioned that a comprehensive and lasting peace agreement has yet to be finalized.
Vice President Vance described the signed memorandum as a brief and largely general document, noting that more detailed provisions would be released in the coming days. He indicated that the framework includes a substantial sanctions-relief package for Iran.
According to US and Iranian officials, a final agreement could provide major economic incentives for Tehran, including the lifting of sanctions, the release of frozen assets, and the creation of a proposed $300 billion reconstruction fund financed by Gulf states hosting US military bases.
In return, Washington is seeking firm commitments that Iran will never pursue nuclear weapons and will reduce support for regional armed groups, including Hezbollah.
However, several contentious issues remain unresolved. The fate of Iran’s stockpile of enriched uranium, its ballistic missile program, and broader regional security arrangements are expected to dominate the next phase of negotiations.
Shipping companies also remain cautious despite the agreement. While Iran has agreed to lift restrictions on the Strait of Hormuz, commercial operators say traffic will only fully resume once security and safety guarantees are firmly established.
International Support for the Agreement
In a strong show of international backing, 17 countries issued a joint statement welcoming the US-Iran memorandum of understanding and describing it as an opportunity to restore regional stability and support the global economy.
The statement, initially issued by the governments of United Kingdom, France, Germany, and Italy, was later joined by 13 additional nations, including Japan, Canada, Australia, Poland, Portugal, Finland, Greece, and others.
The countries congratulated the United States, Iran, and mediators including Pakistan and Qatar for achieving what they described as a major diplomatic breakthrough.
The signatories called for the swift conclusion of detailed negotiations, the immediate reopening of the Strait of Hormuz, and the restoration of unrestricted freedom of navigation. They also reiterated that Iran must never acquire nuclear weapons and pledged support for a long-term diplomatic settlement in coordination with the United States, Iran, and the International Atomic Energy Agency.
The statement further emphasized support for the sovereignty and stability of Lebanon and highlighted the importance of maintaining a durable ceasefire across the region.
The preliminary accord represents the most significant diplomatic effort to end the conflict so far, but its ultimate success will depend on whether both sides can bridge longstanding differences and transform the temporary arrangement into a comprehensive and lasting peace agreement.
By Agencies
