U.S. President Donald Trump and Iranian President Masoud Pezeshkian signed the memorandum of understanding during a dinner at Versailles on Wednesday, according to media reports, footage posted by French President Emmanuel Macron, and images from Iran\u2019s state-run IRNA news agency. This came ahead of a previously planned formal signing ceremony in Switzerland on Friday, whose status is now unclear.<\/p>\n
Pakistani President Shehbaz Sharif, who has acted as a mediator, said the deal takes \u201cimmediate effect\u201d and mandates a permanent halt to hostilities between Washington and Tehran. The two countries have been at war since late February, with a fragile ceasefire in place for much of the past two months. Trump, however, warned that attacks on Iran could restart.<\/p>\n
The memorandum launches a 60-day deadline for negotiations on Iran\u2019s nuclear program. Nuclear talks are scheduled to be held in Switzerland from Friday to Sunday, according to The Wall Street Journal. Trump has made eliminating Iran\u2019s nuclear capabilities a central goal of the conflict, while Iran maintains its nuclear ambitions are peaceful. The International Atomic Energy Agency has previously said Iran is the only country to enrich uranium to 60% without a declared weapons program.<\/p>\n
A key provision of the agreement is the reopening of the Strait of Hormuz, a critical route for about one-fifth of the world\u2019s oil and liquefied natural gas, which has been effectively closed for months. The closure has contributed to higher oil prices and concerns about global inflation. Vessels will be allowed to transit the strait but must coordinate their passage with Iran\u2019s Islamic Revolutionary Guards Corps, Reuters reported, citing Iranian state television.<\/p>\n
According to the Associated Press, the agreement would reopen the strait without tolls for two months, although it does not rule out future fees. The U.S. would also waive some sanctions on Iran. Nonetheless, several countries are reassessing their energy strategies amid concerns that Iran could again close the strait, International Energy Agency head Fatih Birol noted.<\/p>\n
The deal also envisages a $300 billion reconstruction fund for Iran, though specific details of the fund remain unclear. Trump emphasized that the U.S. will not contribute to this fund. In addition, the memorandum reaffirms a commitment to Lebanon\u2019s territorial integrity, an issue complicated by Israeli attacks on Iran-backed Hezbollah forces in Lebanon.<\/p>\n
White House officials have not yet released the full text of the memorandum. However, U.S. officials dictated the draft to journalists, and a version published by Iranian authorities largely aligns with the U.S. account, according to the Associated Press.<\/p>\n
What are the main elements of the U.S.\u2013Iran agreement?<\/strong> When and where was the deal signed?<\/strong> How does the deal affect oil and gas flows?<\/strong> What is known about the upcoming nuclear talks?<\/strong>
The agreement calls for a permanent halt to hostilities, reopening of the Strait of Hormuz, a 60-day timeline for nuclear negotiations, partial U.S. sanctions waivers, a planned $300 billion reconstruction fund for Iran, and a reaffirmation of Lebanon\u2019s territorial integrity.<\/p>\n
The memorandum of understanding was signed on Wednesday during a dinner at France\u2019s Versailles palace, coinciding with Trump\u2019s visit for a Group of Seven summit.<\/p>\n
The deal reopens the Strait of Hormuz\u2014through which about one-fifth of global oil and liquefied natural gas passes\u2014after months of effective closure that contributed to higher oil prices and inflation concerns.<\/p>\n
Nuclear talks between the U.S. and Iran are scheduled to take place in Switzerland from Friday to Sunday, within a 60-day deadline to negotiate Iran\u2019s nuclear program.<\/p>\n