The United States and Iran have unexpectedly signed a preliminary peace agreement in France to end the war and reopen the Strait of Hormuz. The memorandum of understanding (MoU) was signed by President Donald Trump and Iranian President Masoud Pezeshkian during a state dinner at the Palace of Versailles, ahead of the official ceremony scheduled to take place in Switzerland on Friday.
Pakistani Prime Minister Shehbaz Sharif, the main mediator, confirmed that the agreement would take immediate effect to end armed hostilities that have erupted since late February. However, Trump issued a stern warning that military operations against Iran could be reactivated if the agreed security terms are violated.
Following the signing, a 60-day deadline for negotiations on Iran's nuclear program officially began in Switzerland. Trump maintained his goal of eliminating Tehran's atomic capabilities, while Iran continued to defend its peace prospects despite the IAEA report on the country's enrichment of 60% high-grade uranium.
The diplomatic deal successfully reopened the Strait of Hormuz commercial route without tolls for two months to ease soaring energy costs and the threat of global inflation. However, each merchant ship must coordinate with Iran's Islamic Revolutionary Guard Corps (IRGC). At the same time, the White House is ready to provide certain economic sanctions exemptions in return.
The MoU also outlines a joint commitment to the integrity of Lebanon's borders, which has previously been a point of contention following clashes between Israel and Hezbollah. In addition, plans to establish a $300 billion Iran reconstruction fund will be created, but Trump stressed that the US government will not contribute any financial funds to the fund.
