Trump-Iran Interim Agreement Extends Ceasefire as G7 Leaders Welcome Path to Peace

The United States and Iran have released the text of a newly signed interim agreement aimed at ending months of conflict, with U.S. President Donald Trump warning that military action could resume if Tehran fails to comply with its commitments.

Speaking during the G7 summit in France, Trump said the United States would respond forcefully to any violation of the agreement, while expressing hope that ongoing negotiations could lead to a lasting peace deal in the Middle East and help stabilize global oil markets. Despite the warning, Trump described Iranians as “smart people” and voiced optimism about reaching a permanent settlement within the next 60 days.

The agreement, signed digitally by Trump and Iranian President Masoud Pezeshkian in both English and Farsi, extends an existing ceasefire for another 60 days. According to officials from both countries, the memorandum took effect immediately upon signing.

Key provisions include a halt to military operations, the reopening of maritime traffic through the Strait of Hormuz, the lifting of U.S. sanctions on Iran, the unfreezing of Iranian assets, and the creation of a $300 billion reconstruction fund. The deal also calls for increased cooperation with the International Atomic Energy Agency (IAEA), including supervised down-blending of Iran’s enriched uranium stockpile.

Iranian officials hailed the agreement as a diplomatic victory, arguing that negotiations delivered greater benefits than military confrontation. The arrangement leaves several contentious issues unresolved, however. Iran’s government remains intact, its ballistic missile program continues, and Tehran has not agreed to end support for regional groups such as Hezbollah.

In a notable shift, Trump softened his earlier stance on Iran’s missile capabilities, suggesting it would be unfair to deny Tehran missiles if other nations possess them. The remark contrasts with previous pledges to dismantle Iran’s missile infrastructure.

G7 leaders broadly welcomed the agreement, viewing it as an opportunity to reduce tensions and improve regional stability. Meanwhile, questions remain over the implementation of ceasefire terms in Lebanon, where sporadic clashes between Israeli forces and Hezbollah have continued despite the agreement.

Oil prices initially declined on expectations that the Strait of Hormuz would remain open, easing concerns over global energy supplies. However, prices later recovered after Trump’s comments about potentially renewing military strikes if the agreement is breached.