Trump, Iran President Sign Deal to End Middle East War

US President Donald Trump and Iranian President Masoud Pezeshkian on Wednesday signed an agreement aimed at ending the Middle East conflict, under which Tehran will dilute its stockpile of enriched uranium in exchange for extensive economic relief.

Trump signed the memorandum of understanding during a dinner with French President Emmanuel Macron at the Palace of Versailles following the G7 summit, a US official told AFP.

Iranian Foreign Ministry spokesperson Esmaeil Baqaei confirmed the development, telling state news agency IRNA that the document had been finalized with the signatures of both presidents.

The agreement seeks to bring an end to the war that began on February 28, when the United States and Israel launched military operations against Iran. Tehran responded with missile and drone attacks across the region and effectively shut down the Strait of Hormuz, a key artery for global energy supplies.

“Now it is time to test the implementation of the agreement,” Baqaei said.

Under the deal, Washington will immediately lift oil sanctions that have severely affected Iran’s economy. Once a comprehensive agreement on Iran’s nuclear programme is reached, the United States will also facilitate the release of a $300 billion reconstruction fund backed by regional countries.

The agreement had initially been expected to be signed by Iranian Parliament Speaker and chief negotiator Mohammad Bagher Ghalibaf and US Vice President JD Vance, but Iran later said a formal in-person ceremony was unnecessary.

Iranian officials portrayed the agreement as evidence of a US setback. “People will see it and judge,” Ghalibaf said on state television after the text was published by both sides.

China also weighed in, with its top diplomat stressing that all parties must genuinely implement their commitments under the agreement.

Despite the breakthrough, the deal has drawn criticism from some of Trump’s allies. The conflict resulted in the deaths of 13 US service members and consumed significant American military resources.

The agreement is intended as an interim arrangement, creating space for negotiations on the more complex issue of long-term oversight of Iran’s nuclear activities, which Washington has long suspected could be linked to a weapons programme.

Trump warned earlier in the day that the United States would respond forcefully if Iran violated the agreement.

Republican Senator Bill Cassidy sharply criticised the deal, arguing that Iran’s nuclear ambitions remained unchecked and that Tehran had demonstrated the effectiveness of using threats to disrupt global oil routes.

Meanwhile, Hezbollah leader Naim Qassem hailed the agreement as a “great victory” for Iran and thanked Tehran for ensuring that Lebanon was included in the ceasefire arrangements.

The accord also paves the way for a two-month negotiation period, beginning with efforts to reopen the Strait of Hormuz. According to US officials, Iran will dilute its enriched uranium reserves, potentially under the supervision of the International Atomic Energy Agency (IAEA), a step expected to unlock broader economic assistance.

A US official noted that Washington would not be required to provide direct financial contributions.

Global oil prices, which had fallen on expectations of a lasting peace deal, briefly surged by five percent on Wednesday amid uncertainty over the signing before stabilising later.

In Lebanon, violence has decreased since the announcement, though Israeli strikes in the south have reportedly killed at least five people. The Israeli military also reported that five soldiers were wounded in a drone attack in southern Lebanon and said its air force intercepted several rockets launched toward troops operating in the area.