US, Iran Sign Interim Deal to End Hostilities, Ease Sanctions; Nuclear Talks to Continue

WASHINGTON, June 18: US President Donald Trump and Iranian President Masoud Pezeshkian on Wednesday signed an interim agreement aimed at ending hostilities between the two countries, easing US-backed sanctions on Iran, reopening the Strait of Hormuz and paving the way for negotiations on Tehran’s nuclear programme.

The agreement, which takes immediate effect, allows Iran to dilute its stockpile of highly enriched uranium while enabling it to resume unrestricted oil exports under US sanctions waivers. It also launches a 60-day negotiation period to reach a comprehensive agreement on Iran’s nuclear programme.

Pakistani Prime Minister Shehbaz Sharif, who helped mediate the talks, announced on X that the accord had come into force immediately after leaders of both countries signed it.

The interim pact restores several pre-war arrangements, including an end to military hostilities, the reopening of the Strait of Hormuz and the resumption of direct nuclear negotiations between Washington and Tehran. However, President Trump warned that military action could resume if negotiations fail.

“It’s a memorandum of understanding, and if I don’t like it, we’ll go back to shooting at them, dropping bombs,” Trump said after signing the document during a dinner with French President Emmanuel Macron at the Palace of Versailles.

Trump signed the physical copy of the agreement following a trip to the G7 summit in France. A video released by the White House showed him signing the document before handing it to Secretary of State Marco Rubio as those present applauded.

In Tehran, President Masoud Pezeshkian signed the agreement on behalf of Iran, with state-run IRNA publishing photographs showing both leaders’ signed copies.

Although the full text has not been officially released, draft versions circulated by US officials and later published by Iranian state television indicate that the agreement would reopen the Strait of Hormuz without tolls for two months, restore commercial shipping and lift the blockade on Iranian ports.

The US will waive selected sanctions immediately, allowing Iran to freely export oil during negotiations, while discussions on lifting broader US and UN sanctions—including those related to Iran’s weapons programme and human rights record—will continue as part of future talks.

The agreement also includes provisions supporting Lebanon’s territorial integrity amid Israel’s military operations against Hezbollah. However, Iran’s demand that Israel withdraw from occupied Lebanese territory has already been rejected by Israel, making the issue one of the most contentious aspects of the accord.

The US and Israel launched military operations against Iran on February 28, with Washington citing the need to prevent Tehran from acquiring nuclear weapons. During the conflict, Trump repeatedly stated that the campaign sought to dismantle Iran’s nuclear and missile capabilities and curb its support for regional proxy groups.

The interim agreement stops well short of those objectives but was described by Trump as “very strong.”

The sanctions relief offered to Iran goes beyond the concessions granted under the 2015 nuclear agreement, from which Trump withdrew during his first presidential term after calling it the “worst deal ever.”

Iran continues to insist that its nuclear programme is entirely peaceful.

The accord is expected to face strong opposition in Washington and is likely to be viewed as a setback for Israeli Prime Minister Benjamin Netanyahu, who has come under increasing domestic criticism as details of the agreement emerge.

According to officials familiar with the negotiations, further concessions—including the release of frozen Iranian assets and complete lifting of sanctions—will depend on progress achieved during the 60-day nuclear talks.

In the meantime, the immediate sanctions waivers will allow Iran to resume oil exports freely. Iran earned more than USD 46 billion from oil exports in 2024, with China remaining its largest buyer despite existing sanctions.

Analysts note that granting sanctions relief at the outset reduces a major source of US negotiating leverage compared to the 2015 nuclear agreement, under which oil sanctions were lifted only after Iran met strict nuclear commitments.

The proposed agreement also envisages up to USD 300 billion in reconstruction support for Iran, primarily through investments from Gulf Arab nations, although Vice President JD Vance acknowledged such funding would depend on regional willingness and the outcome of future negotiations. Trump reiterated that the United States would not finance the rebuilding effort.

The reopening of the Strait of Hormuz is widely regarded as the agreement’s biggest economic outcome. The strategic waterway, through which nearly one-fifth of global oil and natural gas trade previously passed, had been largely shut due to the conflict, driving up global energy prices and disrupting international shipping.

Under the accord, commercial traffic is expected to return to pre-war levels within 30 days, although the agreement acknowledges that Iranian naval mines may first need to be cleared to ensure safe navigation. (Agencies)