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VERSAILLES, France — In a major geopolitical breakthrough, the United States and Iran have officially signed a historic peace agreement to end the ongoing conflict and reopen the Strait of Hormuz. The landmark memorandum of understanding, which took effect immediately, marks the first step of a comprehensive 14-point plan aimed at de-escalating regional tensions.
According to breaking reports, the U.S. and Iran remotely signed the agreement to end the war, setting the stage for a 60-day wind-down period. While U.S. officials had indicated earlier in the day that the signing could happen within 48 hours, the deal was finalized ahead of schedule. President Donald Trump personally signed a physical copy of the agreement during a dinner with French President Emmanuel Macron at the Palace of Versailles. A photograph of the signed document was subsequently transmitted to Iranian representatives and mediating countries to confirm the deal’s activation.
The newly implemented framework outlines several immediate changes, most notably the reopening of the Strait of Hormuz. The vital waterway will remain toll-free for the next 60 days, though Iranian officials have indicated that tolls could be instituted after the initial negotiation period concludes. Additionally, the agreement officially ends the naval blockade and lifts sanctions on the sale of Iranian oil, allowing international investors to engage with the country.
A central component of the deal is a $300 billion reconstruction and economic development package designed to incentivize Iran to comply with the agreement’s terms. President Trump emphasized that “not 10 cents” of the funding will come from U.S. taxpayers, noting that the capital will be sourced from frozen assets and private investors. However, the administration acknowledged that the paperwork does not include mechanisms to regulate or enforce how Iran utilizes the funds. This has sparked concern among Iranian analysts who fear the capital could be used to refortify the nation, though the White House maintains that future military action is not off the table if Tehran breaches the terms.
The agreement also establishes a strict 60-day negotiation window to finalize a comprehensive deal regarding Iran’s nuclear program. Under the current terms, technical discussions for the immediate removal of all enriched uranium stockpiles have begun. President Trump stated that Iran will work closely with the U.S. to turn over the enriched material, which he described as being stored “very deep in the bowels of the earth.” He noted that the sites are heavily monitored with cameras covering “every inch,” and issued a stark warning to Tehran.
“And if they do [acquire a nuclear weapon], they suffer unbelievable consequences,” President Trump stated while speaking at the G7 Summit. “Not just a little bit — I won’t even tell you the consequences, but the consequences are the ultimate consequences.” He further warned that any attempts to access the enriched material would be met with immediate military force, adding, “We’ll hit them with Patriots… And they’ll be gone.”
While the agreement mandates an end to the fighting in Lebanon, the provision has created friction on the ground. Israeli officials have stated they have no intention of withdrawing IDF troops from southern Lebanon, maintaining that their presence is a necessary buffer zone to protect northern Israeli residents from Hezbollah. Iran, however, considers the Israeli presence an occupation and has warned that a failure to fully withdraw would constitute a breach of the new agreement.
Despite the friction over Lebanon, President Trump described Israel as a “great partner” and confirmed that the details of the agreement have been shared directly with Israeli leadership. While urging Israel to improve its efforts against Hezbollah, the administration remains focused on the successful implementation of the 14-point plan as the 60-day countdown begins.