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

The United States and Iran have signed a 14-point memorandum of understanding to end their 110-day war, halting military operations across the Middle East and immediately reopening the Strait of Hormuz. The preliminary agreement, mediated by Pakistan and dubbed the "Islamabad MoU," lifts the U.S. naval blockade on Iranian ports and grants Tehran immediate waivers to resume crude oil exports.[5][6]

President Donald Trump signed the document on Wednesday evening during a dinner with French President Emmanuel Macron at the Palace of Versailles, following the G7 summit. Iranian President Masoud Pezeshkian signed the agreement concurrently in Tehran. Trump heralded the deal as a "major win" that averted a "worldwide depression," pointing to tumbling oil prices as immediate proof of success.[2][4][5]

The framework establishes a fragile 60-day window for the two nations to negotiate a permanent treaty. During this period, Iran has agreed to allow toll-free commercial shipping through the Strait of Hormuz—a critical chokepoint for 20 percent of the world's oil—and to begin diluting its stockpile of highly enriched uranium under international supervision.[6][7]

In exchange, the U.S. will progressively unfreeze billions of dollars in Iranian assets and waive energy sanctions. The agreement also outlines a potential $300 billion reconstruction fund for Iran, financed by Gulf regional partners, contingent on Tehran's compliance.[4][7]

Despite the economic relief celebrated by European leaders, the deal has ignited a firestorm of bipartisan outrage in Washington. Critics argue the administration traded its maximum leverage for temporary concessions, effectively returning to the pre-war status quo but with an emboldened Iran.[1][4]

Republican Senator Ted Cruz, a staunch supporter of the initial military campaign, warned that the president was receiving "very poor advice," cautioning against handing billions in sanctions relief to "theocratic lunatics." Senator Bill Cassidy echoed the sentiment, arguing that Tehran learned that threatening the global economy via the Strait of Hormuz yields massive diplomatic rewards.[1][4]

Condemnation was equally fierce from Democrats. Representative Adam Schiff called the agreement "hard to imagine a more thorough capitulation," while Susan Rice, a former national security adviser, labeled it the "biggest national security blunder in decades." They point out that Iran secured the ability to export oil and access frozen funds while only offering a vague reiteration that it will not develop a nuclear weapon.[1][4]

In Tehran, the mood is triumphant. Iranian Parliament Speaker Mohammad Bagher Ghalibaf described the agreement as a "record of US failure," boasting on state television that Iran achieved through negotiation what it could never have won militarily. Analysts note that the regime survived a direct conflict with the U.S. and Israel, broke a crippling naval blockade, and emerged with its infrastructure largely intact.[3][4][7]

A major flashpoint in the agreement is its mandate to end military operations "on all fronts, including in Lebanon." This provision effectively demands a halt to Israel's ongoing campaign against Hezbollah, granting the Iranian proxy a critical reprieve.[5][7]

Israel, which was not a party to the negotiations, has signaled deep unease. The Israel Defense Forces stated Thursday that their troops would remain in southern Lebanon to secure their northern border, setting up an immediate test of the MoU's durability. Iranian officials have already warned that an ongoing Israeli presence in Lebanon would constitute a violation of the deal.[5]

The symbolism of the signing location has not been lost on historians or critics. Trump inked the deal at the Palace of Versailles, the site of the 1919 treaty that ended World War I but famously sowed the seeds for future conflict. European leaders, however, sidelined historical parallels in favor of immediate economic relief, with Macron praising the end of a "situation of great instability."[4]

On the water, the effects are already visible. At least 10 commercial vessels transited the Strait of Hormuz on Thursday morning, though maritime experts warn that clearing the waterway of Iranian mines could take weeks.[5]

The ultimate success of the Islamabad MoU hinges entirely on the next 60 days. Either side can walk away if negotiations over Iran's ballistic missiles and permanent nuclear infrastructure collapse. Furthermore, Ghalibaf has already stated that Iran intends to charge tolls for ships passing through the Strait of Hormuz once the 60-day fee-free period expires, a demand the U.S. and Gulf states are highly unlikely to accept.[4][7]