A preliminary agreement to halt the Gulf war was signed electronically by the United States and Iran on Monday, according to President Donald Trump. The deal extends a fragile truce and promises to reopen a critical global oil passage, though the path to a lasting peace remains shrouded in uncertainty.
The memorandum of understanding, described by officials as a brief general document, prolongs the ceasefire announced in April by another 60 days. Crucially, it aims to lift Iran’s blockade of the Strait of Hormuz, the narrow waterway it has effectively choked off since the US and Israel launched military strikes in February, disrupting one-fifth of the world’s oil trade.
“The deal’s all signed,” Trump declared upon arriving in France for a G7 summit. He indicated that Vice President JD Vance would attend a formal signing ceremony in Geneva on Friday. Oil prices subsequently plunged to their lowest point since March 10.
A General Document with High Stakes
Despite the fanfare, the specifics of the agreement are largely unknown. Vice President Vance told CNN the signed memorandum was only about one and a half pages, calling it “a very general document.” US officials said details would be released over the next two days, noting it includes “a very significant sanctions relief package” for Iran.
Iranian President Masoud Pezeshkian acknowledged the pact as an “important step” toward halting the bloodshed but cautioned that a final agreement for a permanent truce “has yet to take shape.” The conflict has claimed at least 7,000 lives, mostly in Iran and Lebanon, and roiled global energy markets.
The agreement is the most significant diplomatic breakthrough since the war began but leaves the most difficult issues for future negotiators. The future of Iran’s nuclear programme, its ballistic missile arsenal, and its support for regional militias like Hezbollah remain unresolved points of contention.
Economic Incentives and Unmet DemandsUS and Iranian officials suggest the deal could eventually deliver substantial economic benefits to Tehran by lifting sanctions, unfreezing foreign assets, and establishing a $300 billion reconstruction fund paid for by neighboring Gulf states. However, anonymous US officials stressed that Iran must satisfy demands never to build a nuclear weapon and to cut off support for militias like Hezbollah to receive those benefits.
Trump appears to have achieved little of what he initially intended when he launched strikes on February 28. Iran’s government remains in place, and his demands for dismantling its ballistic missile programme and ending support for regional proxies remain unmet. The new agreement also does not resolve the fate of Iran’s stockpile of enriched uranium, which Trump insists must be destroyed or removed.
Iranian officials, who have always denied seeking a nuclear weapon, say they have conceded little by agreeing to resume diplomatic discussions that were interrupted by the war.
Lebanon Remains a Sticking Point
The fighting between Israel and Hezbollah in Lebanon, which has uprooted 1.2 million people, remains a critical obstacle. Iran insists the deal requires a full cessation of hostilities there. However, Israeli Prime Minister Benjamin Netanyahu declared that Israel would keep its forces in southern Lebanon and retain the right to respond to Hezbollah attacks.
“Iran wanted us to withdraw from it, but I stood firm,” Netanyahu said, acknowledging differences with Trump over the conflict. A US official stated that an Israeli withdrawal from Lebanon not a condition of the deal. Privately, Israeli officials views are starkly negative. One senior official told Reuters the agreement was “terrible for Israel,” an assessment shared throughout the government.
While security sources reported a reduction in fighting after the announcement, it had not ceased entirely. Iranian Foreign Minister Abbas Araqchi insisted that Israeli attacks must stop immediately.
