PARIS, France — The United States and Iran have signed an interim ceasefire agreement aimed at ending their war, but US President Donald Trump warned that Washington could resume attacks if Tehran fails to honour its commitments.
The agreement, described as a 14-point memorandum of understanding, creates a 60-day negotiation period toward a broader settlement. It includes commitments to halt fighting, reopen the Strait of Hormuz, address Iran’s nuclear programme, and begin discussions on sanctions relief and economic recovery measures.
Speaking during the G7 summit in France, Trump said the deal depended on Iran’s compliance and issued a warning against any violations.
“We’re going to bomb the hell out of them if they violate the agreement,” Trump said, while adding that he wanted Tehran to respect the terms.
The remarks came as global leaders welcomed the agreement as a possible turning point in a conflict that disrupted energy markets and heightened fears of a wider regional war.
Deal opens path for negotiations
Under the memorandum, Iran has reaffirmed that it will not develop nuclear weapons and accepted international oversight of aspects of its nuclear activities. The agreement also outlines steps toward restoring maritime traffic through the Strait of Hormuz, a key global energy route.
Iranian officials portrayed the deal as evidence that negotiations had achieved what military action could not.
Iran’s lead negotiator, Mohammad Baqer Qalibaf, said diplomacy had delivered results that were “not even comparable” to what could have been achieved through conflict.
The agreement also addresses economic issues, including the possible release of frozen Iranian assets and a proposed reconstruction framework. However, several major disputes remain unresolved, including the long-term limits on Iran’s nuclear programme, missile capabilities, and regional alliances.
Regional tensions remain
Although the United States and Iran have moved toward de-escalation, the agreement faces challenges from regional actors.
The ceasefire framework includes provisions affecting fighting involving Lebanon’s Hezbollah movement, but Israel was not a direct party to the negotiations and has indicated it will maintain the ability to respond militarily if it believes its security is threatened.
Trump also criticised Israeli Prime Minister Benjamin Netanyahu’s approach to the Lebanon conflict, urging a more restrained response.
“Netanyahu happens to be a good man, gets a little excited sometimes,” Trump said, calling for what he described as a “softer touch” in Lebanon.
Economic impact
Markets reacted positively to signs of reduced tensions. Oil prices fell after the agreement raised expectations that traffic through the Strait of Hormuz could return to normal. Brent crude prices dropped as traders anticipated improved energy supply conditions.
However, analysts warned that the agreement remains fragile because key political and security questions have not been settled.
For Iran, the deal offers a possible route toward sanctions relief and economic recovery. For Washington, it provides a framework to limit nuclear risks without continuing a prolonged military campaign.
