The Memorandum of Understanding
During a gala hosted by President Macron in the Palace of Versailles, President Donald Trump and Iran’s President Masoud Pezeshkian signed a memorandum that immediately ends military operations on all fronts, including in Lebanon, and grants the UAE a window to invest in Iran once conditions are met.
Key provisions include the reopening of the Strait of Hormuz, temporarily free of fees for 60 days; a $300 billion reconstruction package for Iran that will be staged under UN supervision; and the US’s promise to lift every sanction currently applied to Iran.
Nuclear terms remain tentative, with a clause that Iran will not be able to acquire or develop nuclear weapons but does not specify immediate verification or removal of enriched uranium. Instead, the memorandum states that enriched uranium will be down‑blended on site under International Atomic Energy Agency oversight, while a maximum 60‑day window allows for negotiation toward a final, fully enforceable agreement.
International and Domestic Reactions
In Washington, Republicans and Democrats alike point fingers. Senator Bill Cassidy calls the pact a “worst foreign‑policy blunder,” while Senator Joan Shaheen describes it as “a very bad deal” that overlooks Iran’s support for regional proxies and its missile programme.
In Tehran, the military’s Mohammad Bagher Ghalibaf remains skeptical, asserting that Iran will keep the finger on the trigger and that the Strait of Hormuz may not return to pre‑war conditions once the temporary period expires. Pezeshkian’s signature is seen as a diplomatic pivot, though official state media highlight their ongoing distrust of the United States.
Economic Impact
Oil prices fell moderately following the deal, with Brent crude in early Asia trading around $78 a barrel—about $8 higher than pre‑war levels. Trump highlighted the plan’s potential to prevent “worldwide depression” by averting sustained economic instability.
The memorandum also addresses frozen Iranian assets, with Trump stating that the US will eventually return frozen money to Iran, basing the decision on the UK one‑time freeze imposed during the war.
