VERSAILLES, France — In a rapid diplomatic shift, the U.S.-Iran peace agreement has officially taken effect, initiating a comprehensive 14-point plan designed to de-escalate regional hostilities. The landmark deal mandates the immediate reopening of the Strait of Hormuz and establishes a strict 60-day framework to finalize broader security terms, marking a significant turning point in Middle Eastern geopolitics.
The memorandum of understanding was executed remotely and finalized well ahead of the 48-hour window initially projected by President Donald Trump. The physical signing took place during a dinner at the Palace of Versailles, where President Trump signed a copy of the document alongside French President Emmanuel Macron. To formalize the activation, a photograph of the executed agreement was transmitted directly to Iranian representatives and the mediating nations involved in the negotiations.
Under the newly enacted framework, the naval blockade is officially lifted, and the Strait of Hormuz will operate without tolls for the first 60 days. Iranian officials have noted that shipping tolls could be implemented once this initial negotiation period expires. Furthermore, sanctions on Iranian oil exports are being removed to encourage foreign investment. A central pillar of the deal is a $300 billion reconstruction and economic development package. President Trump clarified that “not 10 cents” of this fund will come from U.S. taxpayers, stating the capital will be sourced from frozen assets and private investors.
The influx of capital has raised concerns among Iranian analysts, who fear the funds could be used to refortify the nation. The administration has acknowledged that the paperwork lacks mechanisms to strictly regulate or enforce how Tehran spends the money. However, officials emphasized that if Iran violates the terms of the accord, future military action remains on the table.
The 60-day window will also be used to negotiate a final settlement regarding Iran’s nuclear program, with technical discussions for the immediate removal of all enriched uranium stockpiles already underway. President Trump noted that Tehran will work with the U.S. to surrender the enriched material, which he described as being hidden “very deep in the bowels of the earth.” He assured that the sites are heavily monitored, stating, “we have cameras on every inch of it.”
Addressing the nuclear negotiations at the G7 Summit, President Trump issued a stark warning to Tehran. “And if they do [acquire a nuclear weapon], they suffer unbelievable consequences,” he stated. “Not just a little bit — I won’t even tell you the consequences, but the consequences are the ultimate consequences.” He added that any attempts to bypass the monitoring would be met with immediate force: “We’ll hit them with Patriots… And they’ll be gone.”
While the accord mandates an end to the fighting in Lebanon, the provision has sparked friction on the ground. Israeli officials maintain they have no plans to withdraw IDF troops from southern Lebanon, describing the deployment as a necessary buffer zone to protect northern communities from Hezbollah rather than an occupation. Conversely, Iranian representatives argue that a full Israeli withdrawal is mandatory, and a failure to do so would constitute a breach of the agreement.
Despite the disagreements over Lebanon, President Trump affirmed that Israel remains a “great partner.” He confirmed that the details of the 14-point plan have been shared directly with Israeli leadership. While he urged Israel to improve its efforts against Hezbollah, the administration remains focused on ensuring the successful implementation of the broader peace framework as the 60-day countdown begins.
