US President Donald Trump and Iranian President Masoud Pezeshkian have signed a memorandum of understanding aimed at ending the conflict between the two countries and paving the way for a broader peace agreement.
The deal, which came after months of tensions and fighting, immediately takes effect and launches a new 60-day diplomatic process focused on reaching a permanent settlement.
Agreement Marks Major Diplomatic Breakthrough
According to reports, the agreement was signed by both leaders after earlier digital endorsements by senior officials from Washington and Tehran. The memorandum represents the first major bilateral agreement between the United States and Iran since the 1979 Islamic Revolution.
The deal establishes an immediate ceasefire and commits both sides to further negotiations over the next two months. International leaders attending the G7 summit welcomed the development and expressed hope that it would reduce tensions across the Middle East.
Nuclear Programme to Be Central Topic of Talks
One of the most sensitive issues left unresolved is Iran’s nuclear programme.
The next 60 days will be dedicated to negotiations on nuclear oversight and verification. Officials from the International Atomic Energy Agency are expected to play a key role in monitoring Iran’s nuclear activities.
IAEA Director General Rafael Grossi welcomed the agreement and said technical discussions would begin immediately to establish inspection mechanisms and compliance procedures.
Strait of Hormuz Reopens for Global Shipping
The agreement also calls for the reopening of the Strait of Hormuz, one of the world’s most important maritime routes.
Normal shipping operations are expected to resume, providing relief to global energy markets and Gulf Arab states that rely heavily on the waterway for oil exports. The arrangement guarantees toll-free navigation for the next 60 days.
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However, concerns remain about what will happen after that period ends. Analysts fear Iran could seek to introduce charges for vessels using the strategic passage.
Sanctions Relief and Reconstruction Package Included
The memorandum also includes measures to ease US sanctions and allow Iranian oil exports to resume.
In addition, plans have been outlined for a reconstruction fund estimated at $300 billion. The funding is expected to support rebuilding efforts inside Iran, although questions remain over how the money will be monitored and distributed.
US and Gulf allies are expected to seek safeguards to ensure that reconstruction funds are not diverted to military programmes, including ballistic missile and drone development.
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Trump Warns Agreement Could Be Reversed
Despite the breakthrough, President Trump warned that military action could resume if Iran fails to comply with the terms of the agreement.
Officials from both countries have described the memorandum as an interim arrangement rather than a final peace treaty. Negotiators now face the challenge of transforming the ceasefire into a lasting agreement capable of addressing long-standing disputes between Washington and Tehran.
