A memorandum of understanding signed Wednesday evening by US President Donald Trump and Iranian President Masoud Pezeshkian to end the war between their countries entered its first day of implementation on Thursday, with the agreement raising hopes of averting a broader economic crisis.
The 14-point agreement ends a war that began in late February after large-scale US and Israeli strikes killed Iran's Supreme Leader Ali Khamenei and several senior military commanders. Tehran responded by targeting American bases in the region’s Gulf and allied countries, launching attacks on Israel and closing the Strait of Hormuz.
While signing the agreement on the sidelines of the G7 summit at France’s Palace of Versailles, Trump maintained threats of renewed military action should Tehran violate its commitments.
The electronic signature is still reportedly expected to be followed by a US-Iran meeting in Switzerland for initial talks on implementing the agreement, along with mediators Pakistan and Qatar, but no details have been announced, as Iranian Ministry of Foreign Affairs spokesperson Esmaeil Baghaei also suggested the meeting may not happen.
According to the text released by the White House, the United States, Iran, and their allies commit to an immediate and permanent halt to military operations across all fronts, including Lebanon, and to respecting each other’s sovereignty and territorial integrity, while launching negotiations for a final agreement within 60 days, extendable by mutual consent.
The memorandum stipulates that the United States will immediately begin lifting the maritime blockade on the Strait of Hormuz, to be fully removed within 30 days, restoring shipping to pre-war levels. In return, Iran guarantees safe passage for commercial vessels without fees for 60 days.
The US and its partners also pledge to prepare a reconstruction and development plan for Iran worth at least $300 billion and to lift all sanctions. Iran, for its part, reaffirms it will not seek to develop or acquire nuclear weapons and will reduce high-level uranium enrichment under International Atomic Energy Agency (IAEA) supervision.
IAEA Director General Rafael Grossi welcomed the memorandum, saying “technical work will begin now,” adding that it was time to work with US and Iranian counterparts on concrete steps.
Until a final agreement is reached, the deal maintains the status quo on Iran’s nuclear program, with Washington refraining from imposing new sanctions or deploying additional forces. The US Treasury will also issue exemptions allowing Iranian crude oil exports and related banking, insurance, and transport transactions.
US President Donald Trump said the economy had remained resilient, noting he had expected stock markets to fall by 25–30% as a result of the war. Instead, he said, the conflict did not escalate to strikes on Iran’s oil pipelines, which helped avoid an “international depression.”
This comes as Iran’s parliament speaker and chief negotiator Mohammad Bagher Ghalibaf said Wednesday “Iran won the war”, and that Iran would suspend its commitments if the United States fails to uphold its obligations under the memorandum, stressing a “step-for-step” approach to implementation.
