The agreement to end the war has sent oil prices to their lowest level in roughly three months and driven broad stock market gains
President Donald Trump in the Oval Office (Will Oliver/EPA/Bloomberg via Getty Images)
President Donald Trump warned Wednesday that the U.S.-Iran agreement is "not final" and that he could resume military strikes if he is dissatisfied with the outcome, as G7 leaders gathered in France endorsed the deal to end the war and agreed to tighten sanctions on Russia.
"It's a memorandum of understanding, and if I don't like it, we'll go back to shooting at them, dropping bombs on their heads," Trump said at the summit. "I don't like it if they don't behave. We'll go right back to dropping bombs right smack in the middle of their head."
Scheduled for a formal signing ceremony in Geneva on Friday, the memorandum of understanding would halt U.S.-Iran hostilities for two months while creating a structure for subsequent talks covering Tehran's nuclear ambitions and related matters. Wednesday also saw tanker traffic resume in the Strait of Hormuz, where at least three Iranian vessels cleared the U.S. Navy blockade — the first outbound shipments of their kind since the blockade was imposed two months ago.
In their leaders' statement, the G7 nations said they "welcome the announcement of a deal between the United States and Iran, secured under the strong leadership of President Trump," describing it as "an historic opportunity to prevent Iran from acquiring any nuclear weapon." The statement added that they "strongly support a robust and comprehensive diplomatic follow-on agreement" to the memorandum of understanding.
On Russia, the G7 statement said the leaders "will strengthen our sanctions, including those on the oil and gas sectors," citing the Iran deal as the right moment to act. The group also pledged to increase delivery of air defense systems and long-range capabilities to Ukraine.
Earlier in the week, Vice President JD Vance acknowledged significant unresolved issues while expressing confidence that the U.S. holds the leverage needed to shape the follow-on negotiations, saying America has "all the cards."
The agreement sent oil prices to their lowest level in roughly three months and drove broad equity market gains, when Trump declared the deal complete in a social-media post and authorized the removal of the U.S. naval blockade. The Strait of Hormuz carries roughly one-fifth of the world's seaborne oil and liquefied natural gas.
Update, June 19, 2026: A proposed $300 billion investment fund for Iran's reconstruction, described as a central element of the Trump-Iran framework, may be "close to impossible" to establish under existing U.S. sanctions law targeting the Islamic Revolutionary Guard Corps, according to an expert warning. The legal conflict could become a flashpoint in follow-on negotiations.
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