Iran Tensions Ease as Trump Declares Preliminary US Deal Signed

US President Donald Trump announced that a preliminary agreement with Iran to end the Gulf conflict has been signed, reopening the Strait of Hormuz and establishing a 60-day ceasefire while leaving key issues like Iran's nuclear program for further talks. The announcement comes as Iran tensions show signs of easing after weeks of disruption that cut off one-fifth of global oil supply.

Trump Announces Signed Preliminary Deal

US President Donald Trump said on Monday a preliminary agreement to end the war in the Gulf has already been signed by the United States and Iran. [2] Trump stated that the deal's all signed after he arrived in France for a summit of the G7 group of big economies. [2] The agreement would reopen the blockaded Strait of Hormuz and extend a ceasefire for 60 days, allowing negotiators to tackle difficult issues like the future of Iran's nuclear program. [2] Trump, US Vice President JD Vance and Iranian parliament speaker Mohammad Bagher Ghalibaf electronically signed the so-called memorandum of understanding on Sunday. [3] The president wanted to sign it personally because he wanted to show his dedication to the process, one of the US officials said. [3]

Economic Impacts and Oil Market Reaction

Oil prices fell to their lowest level since March 10 shortly after the conflict cut off one-fifth of the world's oil supply. [2] The deal is the most significant step yet to resolve the conflict, which has killed at least 7,000 people, mostly in Iran and Lebanon, and upended global energy markets. [2] US and Iranian officials say it could eventually deliver substantial economic benefits to Iran by lifting sanctions, unfreezing foreign assets, and setting up a $300 billion reconstruction fund, paid for by neighboring Gulf allies. [2] The United States said Monday that ships will move toll-free through the Strait of Hormuz under an Iran peace deal signed by President Donald Trump. [3] They included a possible $300 billion reconstruction fund for the war-battered country, but the release of funds will be tied to performance, a senior Trump administration official said in a call with reporters. [3] The very simple fact is zero dollars of frozen assets have been released by the United States or any other country, the first US official said. [3]

Disagreements Over Lebanon and Hezbollah Amid Iran Tensions

The parallel war between Israel and the Iran-backed Hezbollah militia in Lebanon, which has uprooted 1.2 million people, also remains a sticking point. [2] Iran has said the deal requires a full cessation of hostilities there, but Israeli Prime Minister Benjamin Netanyahu said that Israel would keep its forces in southern Lebanon and would retain the right to respond to Hezbollah attacks. [2] A US official said Israeli withdrawal from Lebanon was not a condition of the deal. [2] EU foreign policy chief Kaja Kallas welcomed the US-Iran understanding but said Lebanon should be included in the ceasefire. [1] The bloc's foreign policy chief Kaja Kallas said the toughest phase of the talks still lies ahead. [1] Security sources said fighting had tamped down after the agreement was announced but had not ceased entirely. [2] Lebanese state media reported that an Israeli drone struck a car in the southern Lebanese town of Kfar Tebnit, killing the driver. [2]

Unresolved Issues Including Nuclear Program

Vance admitted the brief outline deal kicks the thorniest issues especially Iran's nuclear program down the road. [3] The MoU is about a page and a half, so it is a very general document, Vance told CNN. [3] Trump appears to have achieved little of what he set out to do when he launched strikes on Iran with Israel on Feb. 28. [2] Iran's theocratic government remains in place, while his demands that Tehran dismantle its ballistic missile program and end support for regional militias like Hezbollah remain unmet. [2] It also does not resolve the fate of Iran's uranium stockpile. [2] Iranian officials, who have always denied intending to build a nuclear weapon, say they have given up little. [2] US officials, speaking on condition of anonymity, said Iran would have to satisfy US demands never to build a nuclear weapon and cut off support for proxy militias like Hezbollah in order to get those benefits. [2]

Israeli Government Reaction

Israeli Prime Minister Benjamin Netanyahu holds a news conference following a US-Iran deal in Jerusalem on June 15, 2026. [2] Iran wanted us to withdraw from it, but I stood firm, he said at a news conference where he acknowledged that he and Trump have had their differences over the conflict. [2] Netanyahu said that Israel has emerged strong and steady with a leadership that stands firm and wise. [4] He acknowledged that he and Trump have sometimes had their differences. [4] He is the president of the United States, I am the prime minister of Israel. We many times see eye-to-eye and there are times when we see eye-to-eye less so. I am in charge of Israel's security interests, Netanyahu said. [4] Privately, Israeli officials' views of the deal have been negative. [2] One senior official told Reuters on condition of anonymity that the agreement was terrible for Israel, and that this assessment was shared throughout the government from Netanyahu on down. [2]

Next Steps and Timeline

Vance will lead technical talks this week and attend a physical signing ceremony expected in Geneva, Switzerland. [3] Trump's son-in-law Jared Kushner and Middle East Special Envoy Steve Witkoff will also be present. [3] Trump, who is attending the G7 summit in France, said the text would likely be released after Friday but the US officials said it would be put out in the next 24-48 hours. [3] The signing will kick off a 60-day period in which Iran and the United States will try to hammer out a full-scale peace deal. [3] We want to put the nuclear discussions up front, a US official said on the call. [3] Shipping traffic should return to pre-war levels over the next couple of weeks but there had already been a substantial increase in traffic, the first US official said. [3]

What to watch next: Details will be released sometime over the next two days, US officials said, with Vance attending a formal signing ceremony in Geneva on Friday and technical talks addressing the nuclear program during the 60-day window.