US President Donald Trump and Iranian President Masoud Pezeshkian signed a 14-point Memorandum of Understanding on June 17 to end the war between their countries and reopen the Strait of Hormuz, closed since February 28 due to conflict sparked by US and Israeli strikes on Iran [1, 2, 3, 4, 5]. The formal signing took place at the Palace of Versailles during the G7 summit in France, following an earlier electronic signing [1, 3, 4, 6, 5]. Trump said, "I am very happy to say it's signed, the deal is all signed" and declared, "Let the oil flow!" [7, 3].
The agreement commits to an immediate and permanent ceasefire on all fronts, including Lebanon, extending the ceasefire by 60 days with possible extension [2, 8, 3, 9, 4, 6]. It also calls for removing the US naval blockade and allowing free navigation through the Strait of Hormuz, a crucial global oil route closed since the conflict began [1, 2, 7, 10, 11, 8, 3, 5]. Brent crude oil prices dropped about 4% following the announcement, while gold and silver prices rose amid uncertainty over the timing of restored oil flow [10, 11].
Under the deal, Iran agreed to downblend its stockpile of highly enriched uranium under International Atomic Energy Agency (IAEA) supervision, with detailed nuclear restrictions and timelines to be negotiated in subsequent talks [9]. Technical discussions on Iran's nuclear program, sanctions relief, and implementation began in the week after signing and will last 60 days extender [1, 2, 3, 9, 4].
The pact includes a $300 billion fund for Iran's reconstruction and economic development, though the US is not required to contribute directly [9, 4, 5]. There remains uncertainty over enforcement, exact nuclear caps, and political acceptance of the deal [7, 8, 9].
Israel strongly opposes the agreement. Prime Minister Benjamin Netanyahu called it a "political nightmare" and vowed, "Israel will continue to protect itself... We will do what we need to do," rejecting US demands to cease attacks on Hezbollah [12, 3]. Iranian Parliamentary Speaker Mohammad Bagher Ghalibaf stated, "Our finger is on the trigger. If the enemy does not understand the language of logic, we will enter again with the language of power" [5].
The conflict began on February 28, 2026, when US and Israeli strikes triggered Iranian retaliation and the closure of the Strait of Hormuz [2, 8, 5]. Initial announcements on the deal's imminence came in mid-June, with electronic signing planned by June 14 and official ceremonies scheduled through June 19 before the final signing at the G7 summit [1, 2, 7, 10, 3, 4, 6, 5].
The next phase focuses on detailed negotiations over nuclear restrictions and economic terms, with a 60-day time frame to implement the ceasefire extension and related agreements [2, 3, 9, 4].
