Iran’s President Masoud Pezeshkian signed the interim peace agreement early on Thursday, hours after President Donald Trump did the same in Versailles after the end of the G7 Summit, in a deal that will take “immediate effect,” allowing for the Strait of Hormuz to be reopened while Iran is allowed to sell its oil without sanctions.
U.S. President Donald Trump speaks to reporters as he arrives at Orly Airport to attend a dinner with French President Emmanuel Macron at Chateau de Versailles.
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A copy of the memorandum of understanding (MoU) was first signed by President Donald Trump on Wednesday night during a dinner with French President Emmanuel Macron at the Palace of Versailles.
In a clip of the signing shared by Macron, Trump can be heard saying, “This was not easy.”
According to CNN, U.S. officials sent a photo of the copy signed by Trump to Iran, where it was then signed by Pezeshkian in Tehran, state media reported.
While sharing photos of the deal being signed, the state-run Islamic Republic News Agency said the MoU concludes the “imposed war waged by the US and the Israeli regime.”
The deal was initially set to be signed in Switzerland on Friday, but Pakistan Prime Minister Shehbaz Sharif—whose country helped mediate the deal—said it will “enter into force with immediate effect.”
In a lengthy statement, Sharif noted that the Strait of Hormuz will be “instantly” reopened and the U.S. will “immediately lift the naval blockade” of Iranian ports.
After days of questions about the deal’s text and criticism of its secretive nature, a U.S. official read out the details in a call with reporters late on Wednesday. As an immediate benefit for signing the deal, Iran will be allowed to sell its oil freely in the international markets again, with the U.S. granting a sanctions waiver. The deal will also allow toll-free passage of all other vessels and oil tankers through the Strait of Hormuz for the next 60 days, leaving the door open for Iran to charge passage fees in the future. Iran, for its part, will be required to “down-blend” its highly enriched uranium stocks under the supervision of the International Atomic Energy Agency—a departure from Trump's demand that Tehran must give up its “nuclear dust.” The interim deal also promises a $300 billion fund for the reconstruction of Iran’s war-damaged infrastructure.
The global benchmark Brent Crude Futures fell to $78.33 per barrel on Thursday, down from around $94 at the start of this month. The price still remains slightly elevated about the pre-war level of around $70 per barrel.
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