Trump and Iran's President Sign Deal to End Middle East War

Presidents Sign Deal to End Middle East War

US President Donald Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding on June 17, 2026, to end the Middle East war that began on February 28, with Iran agreeing to dilute its enriched uranium stocks in exchange for immediate waiver of oil sanctions and potential access to a $300 billion reconstruction fund. [1] The signing occurred during a dinner with French President Emmanuel Macron at the Palace of Versailles after the G7 summit in Évian. [1] Trump put his signature to the memorandum during the dinner, and Iranian Foreign Ministry spokesman Esmaeil Baqaei stated that the document was finalized with the signatures of the presidents. [2] The deal is described as a temporary arrangement to allow two months of negotiations on Iran's nuclear program, including possible down-blending of enriched uranium under IAEA supervision, and the reopening of the Strait of Hormuz. [2] Iran described the agreement as a "great victory" and a US "failure," while US Senator Bill Cassidy called it "the worst foreign policy blunder in decades" for not curbing Iran's nuclear ambitions. [2] Hezbollah leader Naim Qassem hailed the deal as a victory for Iran, noting it covers Lebanon, where violence has declined but Israeli strikes and incidents continue. [2] China urged genuine implementation of commitments, and oil prices fluctuated with initial jumps of 5% on signing uncertainty before stabilizing. [2]

Background of the Conflict and Agreement

The deal aims to draw a line under the war launched February 28 by the United States and Israel, prompting Iran to counterattack with missile and drone salvos across the region and effectively shutting down the Strait of Hormuz, a crucial waterway for the world economy. [2] The agreement is only a temporary arrangement meant to give time for starting detailed negotiations on the far more complex issue of long-term control over Iran's nuclear power ambitions, which Washington has long suspected of harboring a secret bomb-making program. [3] Trump's decision to pull the plug on the war, in which 13 US service members were killed and vast amounts of US ammunition stockpiles were used up, has unsettled some of his own allies at home. [2] A two-month negotiating period now begins, with the much-anticipated reopening of the Strait of Hormuz as the first step. [2] The agreement had earlier been slated for signatures by Iran's chief negotiator and parliament speaker, Mohammad Bagher Ghalibaf, and US Vice President JD Vance, but Iran said an in-person ceremony was no longer needed. [3]

Key Terms and Implementation Steps

Under the text, Washington commits to immediately waive oil sanctions crippling Iran's economy. [2] And once a final agreement is reached on the Islamic republic's nuclear program, the United States will also facilitate the release of a $300 billion reconstruction fund supported by regional nations, the deal says. [2] Iran could get access to a $300 billion reconstruction fund under a deal with the United States, US officials said as they released the text, while insisting that Washington was under no commitment to contribute. [1] Under the terms of the deal released by US officials, Iran will dilute its enriched uranium stocks, possibly by down-blending on site under the supervision of the IAEA, the UN's nuclear watchdog. [2] This would lead to the more far-reaching economic assistance for Iran. [3] A US official said Washington would not be required to contribute financially. [2] Iran's chief negotiator on Wednesday repeated Tehran would charge ships crossing the Strait of Hormuz after a 60-day fee-free period stipulated in a memorandum of understanding with the US. [1] "Now it is time to test the implementation of the agreement," Baqaei said. [2]

Reactions from Iran, Hezbollah and China

Iran insisted the deal represented a US "failure." [2] "People will see it and judge," Ghalibaf said on state television late Wednesday, after the text was released by both sides. [2] The head of the pro-Tehran Lebanese Shiite movement Hezbollah, Naim Qassem, on Wednesday described the deal as a "great victory" for Iran. [2] He thanked Tehran for insisting that the truce cover Lebanon, which was drawn into the conflict when Hezbollah fired rockets at Israel on March 2 in support of Iran. [2] Highlighting the global impact of any deal, China said Wednesday that its top diplomat had impressed on Tehran that it was "key" for all sides to "genuinely implement" their commitments. [2] Iranian Foreign Ministry spokesman Esmaeil Baqaei, quoted by the state news agency IRNA, said the document "was finalized with the signatures of the presidents." [3]

US Domestic Criticism and Trump's Warning

Trump said earlier Wednesday that he was prepared to "bomb the hell" out of Iran if they violated the agreement. [2] But US Senator Bill Cassidy from Trump's own Republican Party was scathing. [2] "Iran's nuclear ambitions were not curbed, and they have learned that threatening the Strait of Hormuz works," he said. [2] "Sanctions will be lifted, and the bombing has stopped. This is the worst foreign policy blunder in decades." [2] One of the US officials said of the nuclear issue on a call with reporters that "The fact that they're conceding to that is a major, major win for the United States of America." [3] A senior US official said, in what he said was his own commentary on the deal, "They're saying we will destroy the enriched stockpile, and this is how we're going to do it at a minimum." [3]

Ongoing Tensions in Lebanon and Market Impact

While violence declined in Lebanon following the announcement of the deal, Israeli strikes on the south have killed at least five people since then, according to state media, which also reported Israeli raids on south Lebanon on Wednesday. [2] Israel's army said five soldiers were wounded on Wednesday, one of them severely, "as a result of an explosive drone impact in southern Lebanon", the first such announcement since the US-Iran deal. [2] The Israeli military also said its air force intercepted "several rockets" launched toward soldiers operating in south Lebanon, without reporting casualties. [2] Oil prices have tumbled in recent days as optimism grew of a lasting Middle East peace agreement, but reversed course on Wednesday. [2] Prices briefly jumped 5 percent as uncertainty spread about the signing, before stabilizing later in the day. [2]

What to watch next: A two-month negotiating period now begins, with the reopening of the Strait of Hormuz as the first step and possible down-blending of enriched uranium under IAEA supervision to determine whether further economic assistance follows.