Details began to emerge on Tuesday of the U.S. and Iran’s interim agreement to end the war in the Middle East, with U.S. President Donald Trump saying it will rule out a nuclear weapon for Tehran and a U.S. official saying it allows Iran to sell oil upon signing.
The memorandum of understanding signed this week but not yet made public, extends a tenuous ceasefire announced in April by another 60 days to allow the warring countries to negotiate a permanent truce. Under the deal, the U.S. will end its blockade of Iran’s ports while Tehran will restore the passage of oil tankers through the Strait of Hormuz, which it has effectively blocked since the U.S. and Israel launched strikes on February 28.
Trump said the agreement clearly states that Tehran will not have a nuclear weapon, with the full text to be made public within days. Iran has long said its nuclear program is for peaceful purposes only.
Israel’s Uncertain Role
Israel has not directly participated in the negotiations and has distanced itself from both the April ceasefire and the latest agreement. U.S. Vice President JD Vance said the agreement included Israel and Lebanon, contradicting Netanyahu, who said Israel is not bound by it and will not withdraw from southern Lebanon. A Hezbollah spokesperson said the group believed Iran would not agree to a permanent truce if the Israeli occupation continued.
Economic Relief for Iran
A senior U.S. official said the deal allows Iran to immediately begin selling oil and fuel, with banking, transportation and insurance services to facilitate sales. It could eventually deliver substantial economic benefits by lifting sanctions and unfreezing assets and could set up a $300 billion reconstruction fund paid for by Gulf states, if Iran complies with other terms.
Difficult Talks Still Ahead
Over the next 60 days, negotiators must address Iran’s nuclear program, along with two issues notably absent from the agenda: ending Iran’s support for regional militias and curbing its missile program. Trump said he was “not happy” with how Israel had handled itself, while expressing optimism about Iran. “Iran wants to get it done… I think it’s going to go pretty quickly,” he said.
Oil prices slid more than 2% to three-month lows on Tuesday. Both sides say the Strait of Hormuz will reopen Friday, though shipping companies remain cautious, and Iran has suggested it will retain control over the strait alongside Oman.
(with input from Reuters)
