President Donald Trump signed an initial agreement with Iran on Wednesday, June 17, 2026, aimed at ending the war and easing tensions. The deal, a 14-point Memorandum of Understanding (MoU), calls for an immediate and permanent end to military operations on all fronts, including in Lebanon. In return for Iran agreeing to dilute its stockpile of highly enriched uranium and pledging not to procure or develop nuclear weapons, the U.S. will waive certain sanctions, allowing Iran to freely sell its oil. This concession goes beyond the terms of the 2015 Obama-era nuclear deal, which Trump had previously withdrawn from.
The agreement also includes the reopening of the Strait of Hormuz, a critical waterway for global oil and natural gas traffic that had been effectively shut down due to Iranian attacks on shipping. For the next two months, the Strait will be free of tolls, and the U.S. will lift its naval blockade on Iranian ports. The deal also outlines a 60-day negotiating period for a final agreement on Iran's nuclear program and a mechanism for providing at least $300 billion for the reconstruction and economic development of Iran, contingent upon this final deal. This $300 billion figure drew criticism from some Republicans, with Senator Thomas Massie noting it was five times the U.S. Congress's annual spending on roads and bridges.
The signing of the MoU has drawn mixed reactions. While praised by some for ending the war and reopening the Strait, it faced backlash from Republicans like Senator Bill Cassidy, who called it "the worst foreign policy blunder in decades." Former Vice President Mike Pence criticized the deal as "appeasement" and urged a more comprehensive agreement. Senator Ted Cruz defended the MoU from comparisons to the Obama deal but voiced concern about funding Iran. Analysts noted that while Trump declared victory, many complex issues, including sanctions and the nuclear program's long-term control, were pushed down the road. Oil prices experienced volatility around the announcement, briefly jumping 5% before stabilizing.
The formal signing ceremony is expected to take place in Switzerland, with Vice President JD Vance leading the American delegation alongside special envoy Steve Witkoff and Jared Kushner. The agreement will lead to the U.S. issuing necessary licenses and authorizations for financial transactions and allowing all associated services, including banking, insurance, and transportation, to be fully usable. The final deal, if reached, will be endorsed by a binding UNSC resolution.
