WASHINGTON/GENEVA: US President Donald Trump announced on Monday that the United States and Iran have signed a preliminary agreement aimed at extending a ceasefire in the Gulf conflict, though both sides stressed that negotiations toward a permanent peace settlement remain ongoing.
Speaking after arriving in France for the G7 summit, Trump said the agreement had been finalized and that Vice President JD Vance would attend a formal signing ceremony in Geneva later this week.
The memorandum would extend the fragile ceasefire reached in April by an additional 60 days and facilitate the reopening of the Strait of Hormuz, a critical shipping route that Iran effectively closed following US and Israeli military strikes against Iranian targets in February.
The agreement marks the most significant diplomatic breakthrough since the outbreak of the conflict, which has reportedly claimed more than 7,000 lives, primarily in Iran and Lebanon, while disrupting global energy markets and regional stability.
However, officials on both sides acknowledged that the memorandum remains a broad framework rather than a comprehensive peace accord. Iranian President Masoud Pezeshkian described the document as an important step toward ending hostilities but stated that a lasting truce had yet to be negotiated.
US Vice President JD Vance said the memorandum spans only a page and a half and contains general commitments, with further details expected to be released in the coming days. He indicated that the agreement includes a substantial sanctions relief package for Iran.
According to US and Iranian officials, future negotiations could lead to the lifting of sanctions, the release of frozen Iranian assets, and the establishment of a proposed $300 billion reconstruction fund financed by Gulf states hosting US military facilities.
US officials said Iran would be required to permanently forgo the development of nuclear weapons and end support for regional armed groups, including Hezbollah, in exchange for economic incentives.
Despite the diplomatic progress, several major issues remain unresolved, including the future of Iran’s enriched uranium stockpile, restrictions on its ballistic missile program, and the role of Iranian-backed groups across the region.
The conflict in Lebanon remains a key point of contention. While Tehran has called for a complete halt to hostilities, Israeli Prime Minister Benjamin Netanyahu stated that Israeli forces would remain deployed in southern Lebanon and retain freedom of action against Hezbollah.
“I stood firm,” Netanyahu told reporters, rejecting Iranian demands for an Israeli withdrawal.
Security sources reported a reduction in fighting following the announcement, although hostilities have not fully ceased. Lebanese state media said an Israeli drone strike in southern Lebanon killed one person on Monday, while Israeli officials claimed several militants had been targeted.
Privately, Israeli officials expressed strong reservations about the agreement. A senior Israeli official, speaking on condition of anonymity, described the deal as “terrible for Israel,” reflecting concerns within the government that the arrangement provides significant concessions to Iran without securing key Israeli objectives.
Meanwhile, oil markets reacted positively to the development, with prices falling sharply as traders anticipated the restoration of maritime traffic through the Strait of Hormuz, a corridor responsible for roughly one-fifth of global oil shipments.
Negotiators from both countries are expected to continue talks in the coming weeks in an effort to transform the temporary arrangement into a broader and more durable peace agreement.