The United States and Iran have signed a 14-point preliminary peace agreement, effective immediately, aimed at ending their over three-month-long war and reopening the Strait of Hormuz, with US President Donald Trump warning of renewed military action if Tehran violates its commitments. This memorandum of understanding (MoU) initiates a 60-day negotiation period for a final agreement addressing sanctions relief and Iran's nuclear program, which includes the unfreezing of Iranian assets, a move Trump defended as crucial for maintaining confidence in the US dollar. The agreement also extends an existing 60-day ceasefire, including in Lebanon, and is described by a senior US official as a framework for Iran to destroy enriched uranium in exchange for phased economic relief tied to compliance, following a conflict that began with a US-Israeli strike on Iran that killed Ayatollah Ali Khamenei and disrupted global supply chains.

The United States and Iran have signed a 14-point preliminary peace agreement, effective immediately, aimed at ending their over three-month-long war and reopening the Strait of Hormuz, with US President Donald Trump warning of renewed military action if Tehran violates its commitments. This memorandum of understanding (MoU) initiates a 60-day negotiation period for a final agreement addressing sanctions relief and Iran's nuclear program, which includes the unfreezing of Iranian assets, a move Trump defended as crucial for maintaining confidence in the US dollar. The agreement also extends an existing 60-day ceasefire, including in Lebanon, and is described by a senior US official as a framework for Iran to destroy enriched uranium in exchange for phased economic relief tied to compliance, following a conflict that began with a US-Israeli strike on Iran that killed Ayatollah Ali Khamenei and disrupted global supply chains.

The United States and Iran have signed a 14-point preliminary peace agreement, effective immediately, aimed at ending their over three-month-long war and reopening the Strait of Hormuz, with US President Donald Trump warning of renewed military action if Tehran violates its commitments. This memorandum of understanding (MoU) initiates a 60-day negotiation period for a final agreement addressing sanctions relief and Iran's nuclear program, which includes the unfreezing of Iranian assets, a move Trump defended as crucial for maintaining confidence in the US dollar. The agreement also extends an existing 60-day ceasefire, including in Lebanon, and is described by a senior US official as a framework for Iran to destroy enriched uranium in exchange for phased economic relief tied to compliance, following a conflict that began with a US-Israeli strike on Iran that killed Ayatollah Ali Khamenei and disrupted global supply chains.

The United States and Iran have signed a 14-point preliminary peace agreement aimed at ending the more than three-month-long war in the Middle East, even as US President Donald Trump warned of resuming military action if Tehran fails to honour its commitments.

The memorandum of understanding (MoU) is intended to end hostilities between the two countries, reopen the Strait of Hormuz, and launch a 60-day process to negotiate a final agreement covering sanctions relief and Iran’s nuclear programme.

The agreement, signed by Trump and Iranian President Masoud Pezeshkian, reportedly came into effect immediately.

“We’re going to bomb the hell out of them if they violate the agreement,” Trump said at a press conference. “I don’t want them to. I want them to honor the agreement.”

The provisions of the agreement include the unfreezing of billions of dollars in Iranian assets. Trump defended this clause, arguing that permanently withholding another country’s funds could undermine global confidence in the US dollar and the international financial system.

“It’s not our money, it’s their money. And we froze it. At a certain point in time, I guess we’re going to have to give it back. If we didn’t give it back, nobody would ever invest in the dollar again,” Trump said while speaking to reporters on the sidelines of the G7 Summit in France.

The agreement also extends an earlier ceasefire announced in April by another 60 days, including in Lebanon, to allow both sides to negotiate a final truce.

A senior US administration official described the agreement as a mechanism to immediately reopen the Strait of Hormuz, address Iran’s stockpile of enriched uranium, and establish a framework for phased economic relief linked to Iranian compliance.

“This is fundamentally an agreement that allows us to open the Strait of Hormuz immediately, commit the Iranians to destroying the nuclear dust, and then gives us a dial where, if the Iranians dial up their good behaviour, we respond by dialling up the kind of economic and sanctions relief that can make them a more prosperous country,” the official told CNN.

The United States and Israel launched the war on Iran on February 28, killing the 86-year-old Supreme Leader Ayatollah Ali Khamenei and senior military leaders on the first day. The conflict quickly escalated into a regional war, with Iran blocking the Strait of Hormuz—a key global oil chokepoint—disrupting international supply chains, causing market instability, and driving inflation in multiple countries.