US and Iran sign memorandum of understanding amid G7 talks

President Donald Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding (MoU) on Wednesday, the White House said, following earlier electronic signatures by Iranian parliamentary speaker Mohammad Bagher Ghalibaf and U.S. Vice-President JD Vance. The agreement, slated for a formal signing ceremony in Switzerland, contains several key provisions. Iran commits not to develop or acquire a nuclear weapon and to allow on-site down-blending of enriched uranium under International Atomic Energy Agency supervision. The MoU also calls for a 60-day toll-free period for commercial shipping through the Strait of Hormuz, after which future fees would be negotiated. U.S. sanctions would be lifted and hostilities, including in Lebanon, would cease. A reconstruction package of up to $300 billion is outlined, though U.S. officials say no American funds will be disbursed until Iran complies with the agreement’s terms.

"Iran has promised not to develop or procure a nuclear weapon," senior U.S. officials said, adding that the IAEA would oversee uranium down-blending. "The Strait of Hormuz will be toll-free for at least 60 days," the officials added. The International Atomic Energy Agency chief described the deal as a "good step forward" but warned that compliance would need verification. Iranian negotiator Ghalibaf expressed continued distrust of the United States, stating that Iran’s “finger is on the trigger” if the U.S. does not honor the terms. Trump, speaking at the G7 summit in France, warned that the United States would take military action if Iran failed to meet the agreement’s conditions. The president also indicated that the 60-day timeline was not a strict deadline for a final settlement. The MoU will be examined line by line in the coming days as both sides work toward a comprehensive peace arrangement.