US and Iran sign initial peace deal to end war and reopen Strait of Hormuz

The United States and Iran have signed an initial agreement aimed at ending months of conflict and reopening the Strait of Hormuz, with both sides committing to further negotiations over Tehran’s nuclear programme.

US President Donald Trump signed the memorandum of understanding during the G7 summit in France, while Iranian President Masoud Pezeshkian later approved the deal in Tehran, according to reports from the BBC.

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The agreement immediately halts military operations and removes sanctions on Iran, while nuclear talks will continue over an extendable 60-day period. It also provides for the reopening of the Strait of Hormuz, a key route for global energy supplies.

"I didn't want to see economic catastrophe. If you kept this going, that could have happened,” Trump told reporters.

"All I know is every time we talked about the possibility of peace, the stock market shot up like a rocket ship."

Iranian parliamentary speaker Mohammad Bagher Ghalibaf warned that distrust remained.

"If the enemy does not understand the language of logic, we will enter again with the language of power," he told state broadcaster Fars.

The deal includes a proposed $300 billion reconstruction framework, although US officials insisted no American money would be directly provided.