President Donald Trump and Iranian President Masoud Pezeshkian signed a 14-point memorandum of understanding this week aimed at ending the U.S.-Iran war and reopening the Strait of Hormuz, with formal negotiations on a final agreement beginning in Switzerland.
Trump signed the document at the Palace of Versailles during a state dinner hosted by French President Emmanuel Macron, following the G7 summit in Evian-les-Bains, according to BBC News. Pezeshkian signed separately, with Iranian state media publishing an image of him holding the signed document.
The agreement declares an "immediate and permanent termination of military operations on all fronts, including in Lebanon," and commits both sides to reaching a final deal within 60 days, extendable by mutual consent. Iran reaffirmed it will not develop nuclear weapons, and its stockpile of enriched uranium is to be diluted on-site under supervision of the International Atomic Energy Agency. The U.S. pledged to lift all sanctions and unfreeze Iranian assets, and committed to working with regional partners on a $300 billion reconstruction fund for Iran — though U.S. officials said the country is not required to contribute directly to that fund, according to NBC News.
Ships began returning to the Strait of Hormuz soon after the deal took effect, with maritime trackers counting at least 10 commercial vessels making the crossing by Thursday morning, according to CBS News. Even so, the numbers fell well short of the roughly 135 vessels that used the waterway on an average pre-war day.
Not all Republicans have embraced the deal. Sen. Bill Cassidy of Louisiana blasted it as "the worst foreign policy blunder in decades," arguing to NBC News that the agreement left Iran in a stronger position at the expense of the U.S. and its partners. Sen. Ted Cruz of Texas took aim at the $300 billion reconstruction fund, telling reporters that funneling money to Iran was "an exceptionally bad idea," according to BBC News.
Facing criticism, Trump offered a defense rooted in economics, warning that continued conflict risked tipping the world into depression and that averting "economic catastrophe" made the agreement necessary, according to NBC News. He acknowledged it did not eliminate Iran's ballistic missile program, a stated goal at the war's outset, according to NBC News.
On the Iranian side, parliamentary speaker Mohammad Bagher Ghalibaf told state media the deal demonstrated U.S. failure, while Supreme Leader Mojtaba Khamenei released a statement portraying Trump as having been driven by desperation to seek terms, according to CBS News. Heading to Switzerland to lead the American negotiating delegation, Vice President JD Vance outlined his priorities for the coming talks: resolving the future of Iran's nuclear program and securing permanent arrangements for the Strait of Hormuz. He cautioned that any Iranian attempt to impose shipping tolls on the waterway would collapse the chances of reaching a final agreement.
More on this story: Trump warns that he can go 'back to dropping bombs' if he doesn't like the final Iran deal
Update, June 21, 2026: Iran sent a "whole-regime" delegation to Bürgenstock, Switzerland, for the first round of technical talks with the U.S. on Sunday. The talks began within days of the signed memorandum of understanding, and followed an earlier round of follow-up talks that had been called off.
Update, June 22, 2026: Iran's frozen assets, estimated at between $100 billion and $120 billion, are held in countries including China, India, Iraq, and South Korea. The memorandum of understanding ties the release of those funds to a step-by-step process, a point expected to be a major source of dispute in the ongoing Switzerland negotiations.
Update, June 22, 2026: Vice President JD Vance announced that Iran has agreed to allow International Atomic Energy Agency inspectors back into the country, marking a reported advance in the Switzerland negotiations.