U.S. and Iran Sign Deal to End 110-Day War, Reopen Strait of Hormuz

The United States and Iran have signed a preliminary agreement to end their 110-day war, initiating an immediate ceasefire and the reopening of the Strait of Hormuz. President Donald Trump and Iranian President Masoud Pezeshkian signed the 14-point memorandum of understanding (MOU) on Wednesday following the G7 summit in France. The accord aims to halt a conflict that began on February 28, which devastated global shipping networks and triggered widespread economic anxiety across international markets.[1][4][7]

The most immediate impacts of the deal are maritime and economic. On Thursday, the U.S. military officially lifted its naval blockade on Iranian ports, allowing dozens of commercial vessels to pass through the region safely. In exchange, Tehran authorized the toll-free reopening of the Strait of Hormuz, a critical global energy chokepoint that had been effectively shut down by the hostilities. Vice President JD Vance reported that 12.5 million barrels of oil transited the strait on Wednesday night alone, marking the highest volume since the war began.[2][4][7][8]

The MOU serves as a framework rather than a final treaty, establishing a 60-day window for negotiators to finalize a comprehensive agreement. During this period, the two nations will negotiate the future of Iran's nuclear program, with Tehran agreeing to dilute its stockpile of highly enriched uranium under international supervision. In return, the U.S. Treasury has committed to issuing immediate waivers on Iranian oil exports and facilitating a $300 billion reconstruction fund supported by regional partners.[1][4][7][8]

Despite the diplomatic breakthrough, the agreement faces an immediate and severe test in Lebanon. The text of the MOU explicitly calls for the "immediate and permanent termination of military operations on all fronts, including in Lebanon." This clause was designed to rein in Hezbollah, the Iran-backed militant group that began firing rockets into Israel in early March in support of Tehran, which subsequently triggered a massive Israeli ground invasion.[1][3][6]

However, Israel—which was not a party to the U.S.-Iran negotiations—has refused to halt its military operations in southern Lebanon. Israeli officials maintain that the MOU does not bind them, and the Israel Defense Forces (IDF) continue to carry out airstrikes and maintain a ground presence in a security zone extending up to 10 kilometers into Lebanese territory. On Thursday, Israeli strikes in southern Lebanon killed at least 16 people, drawing sharp condemnation from Tehran and threatening to unravel the broader peace framework.[2][3][5][6]

Hezbollah leadership has seized on the agreement to declare a strategic win. In a televised address, Hezbollah deputy chief Naim Qassem hailed the U.S.-Iran deal as a "great victory," praising Tehran for linking the Lebanese arena to the broader regional ceasefire. Iranian Foreign Minister Abbas Araghchi warned that any continued Israeli military presence in southern Lebanon would constitute a direct violation of the newly signed MOU, demanding an immediate withdrawal.[3][6]

The disconnect over Lebanon has triggered an unprecedented public rift between Washington and Jerusalem. During a White House press briefing on Thursday, Vice President Vance sharply criticized Israeli leaders for attacking the deal. Noting that U.S. taxpayers funded two-thirds of the weapons used to defend Israel over the past three months, Vance warned Israeli officials to "wake up and smell the reality" of their international isolation, asserting that the current U.S. administration remains their only sympathetic ally on the world stage.[2]

The ongoing violence in Lebanon has already derailed the next phase of diplomacy. Planned technical talks between U.S. and Iranian negotiators, which were scheduled to begin Friday in Switzerland, have been postponed. Iranian officials indicated they would not deploy their delegation to Geneva while Israeli strikes continued, demanding that the U.S. force Israel to comply with the ceasefire terms before final-status negotiations on sanctions and nuclear enrichment can proceed.[3][5][6][8]

Domestically, the agreement has polarized Washington. President Trump defended the deal as a necessary step to prevent "economic catastrophe," claiming it achieves the primary goal of preventing Iran from obtaining a nuclear weapon while ending a costly foreign entanglement. Conversely, conservative critics and some national security analysts have lambasted the MOU as a capitulation, arguing it leaves Iran's nuclear infrastructure largely intact and rewards Tehran with massive economic relief without permanently neutralizing its proxy networks.[4][7]

The fragility of the current peace cannot be overstated. The 60-day negotiating window allows either side to walk away if technical talks collapse, which would likely trigger a rapid return to naval blockades and missile strikes. For now, global markets are watching closely to see if the U.S. can leverage its influence to quiet the Lebanese border, a prerequisite for turning this preliminary ceasefire into a lasting regional settlement.[1][5][7]