Trump and Iran sign initial deal to halt war

President Donald Trump and Iranian President Masoud Pezeshkian have signed an initial agreement aimed at ending the war between the United States and Iran, immediately halting military operations while leaving the central dispute over Tehran’s nuclear program for further talks.

The memorandum of understanding, signed Wednesday during the G7 summit in France, sets a maximum 60-day period for negotiations on a final deal, with the possibility of an extension by mutual consent. The agreement calls for the reopening of the Strait of Hormuz, the termination of U.S. sanctions on Iran, and a $300 billion reconstruction plan for the country.

Trump defended the agreement as necessary to prevent a broader economic crisis after the conflict drove up energy prices and renewed inflationary pressure. “I didn’t want to see economic catastrophe,” Trump told reporters at the G7 summit in Evian-les-Bains. “If you kept this going, that could have happened.” He added: “All I know is every time we talked about the possibility of peace, the stock market shot up like a rocket ship.”

The U.S. and Israel launched the war on Iran on Feb. 28, assassinating Supreme Leader Ayatollah Ali Khamenei and top military officials on the first day, the BBC reported. The conflict escalated as Iran imposed a de facto closure of the Strait of Hormuz, a key waterway for about 20% of the world’s oil and liquefied natural gas.

Oil prices dipped after the agreement was announced. In early Asia trading Thursday, Brent crude was around 1% lower at $78.79 a barrel, though still about $8 above its prewar level.

The 14-point agreement says Iran “reaffirms that it shall not procure or develop nuclear weapons.” It also provides for Iran’s enriched uranium to be down-blended on site under the supervision of the International Atomic Energy Agency. The Guardian reported that senior U.S. administration officials referred to discussions involving Iran’s 440-kilogram stockpile of highly enriched uranium.

Trump said the United States would “bomb the hell” out of Iran if no final deal emerged. But he also softened his position on other Iranian military capabilities, saying it would be “OK” for Tehran to have ballistic missiles “if other countries have them.”

For 60 days, ships will be allowed to pass through the Strait of Hormuz without charges. But Iran’s parliamentary speaker and chief negotiator, Mohammad Bagher Ghalibaf, said the waterway “will not return to pre-war conditions” and indicated Iran would charge ships after that period. “Iran has the right to sovereignty over the strait of Hormuz and of course we will receive a fee for services,” he said on state television.

Ghalibaf also voiced deep distrust of Washington. “The agreement is a record of US failure. People will see it and judge,” he said, according to The Guardian. In comments reported by the BBC, he said Iran’s “finger is on the trigger” and warned: “If the enemy does not understand the language of logic, we will enter again with the language of power.”

The agreement includes the “immediate and permanent termination of military operations on all fronts, including in Lebanon.” The Guardian reported that a senior U.S. administration official said the Lebanon provision was a key Iranian demand and would restrain Israel from operations there. But Israel said it had no plans to withdraw troops from Lebanon and launched attacks on Hezbollah on Wednesday. Trump said Israeli Prime Minister Benjamin Netanyahu was a “good man” but needed “a little softer touch.”

The reconstruction fund has already drawn criticism in Washington. Trump and U.S. officials denied that American money would go to Iran, saying Gulf partners could invest if Iran “behaves.” Trump also said frozen Iranian assets should eventually be returned: “It’s not our money, it’s their money, and we froze it.”

Republican Sen. Bill Cassidy called the agreement “the worst foreign policy blunder in decades,” while Republican Sen. Ted Cruz said, “Giving billions of dollars to theocratic lunatics who want to murder us is not a good idea.” Democratic Sen. Jeanne Shaheen told the BBC it was “a very bad deal” that failed to address Iran’s support for regional proxies or its missile program.

French President Emmanuel Macron called the agreement a “very good deal,” and G7 leaders said it offered “a historic opportunity” to prevent Iran from acquiring a nuclear weapon while addressing threats tied to regional and ballistic activities.