BANGKOK, Thailand — United States President Donald Trump and the President of Iran have signed a landmark memorandum of understanding designed to end the ongoing Middle East war, with Tehran agreeing to dilute its enriched uranium stockpiles in exchange for sweeping economic relief and the lifting of a US naval blockade.

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The agreement was formalized by President Trump during a candlelit dinner at the Palace of Versailles following a G7 summit, an event attended and applauded by French President Emmanuel Macron and other international guests. The signing marks a pivotal de-escalation in a conflict that began on February 28 with joint US and Israeli military operations, which prompted Iran to launch widespread missile and drone counterattacks and effectively close the Strait of Hormuz, a critical chokepoint for the global economy. The US had subsequently responded by imposing a strict naval blockade on Iranian ports. The conflict has exacted a heavy toll, resulting in the deaths of 13 US service members and the depletion of significant American ammunition stockpiles.

Under the immediate terms of the deal, mediated by Pakistani Prime Minister Shehbaz Sharif, the Islamic Republic of Iran will instantly reopen the Strait of Hormuz, while the United States will immediately lift its naval blockade and waive the crippling oil sanctions that have severely impacted Iran’s economy. The agreement, which Sharif confirmed will enter into force immediately, was originally slated to be signed by Iran’s chief negotiator, Mohammad Bagher Ghalibaf, and US Vice President JD Vance. However, Iranian officials later indicated that an in-person ceremony was unnecessary, though Sharif noted that a formal official ceremony will take place in Switzerland on Friday to commence technical talks.

The memorandum outlines a two-month negotiating period to address the far more complex issue of long-term control over Iran’s nuclear program. As an initial step, Iran will dilute its enriched uranium, potentially through down-blending on-site under the supervision of the International Atomic Energy Agency. Once a final agreement on the nuclear program is reached, the United States will facilitate the release of a $300 billion reconstruction fund supported by regional nations, though US officials clarified that Washington will not be required to contribute financially to this pool.

The geopolitical ramifications of the agreement have drawn varied reactions from global and regional actors. Chinese diplomatic leadership has urged Tehran to genuinely implement its commitments, emphasizing the deal’s importance for global stability. Meanwhile, the head of the pro-Tehran Lebanese Shiite movement Hezbollah, Naim Qassem, hailed the agreement as a great victory for Iran, expressing gratitude that the truce extends to Lebanon, which was drawn into the conflict in early March. Conversely, Iranian officials have framed the deal as a strategic failure for the United States, with state media suggesting that the international community will ultimately judge the outcome.

US President Donald Trump digitally signed a memorandum of understanding aimed at ending months of conflict with Iran and reopening the strategic Strait of Hormuz.

Trump said the agreement includes sanctions relief, a framework for broader negotiations, and measures to restore… pic.twitter.com/ykMELMfL6g

— Mid Day (@mid_day) June 18, 2026

Domestically, the agreement has sparked significant pushback from some of President Trump’s own political allies. US Senator Bill Cassidy sharply criticized the deal, arguing that it fails to curb Iran’s nuclear ambitions and rewards the regime for threatening global shipping lanes, calling the outcome the worst foreign policy blunder in decades.

Despite the diplomatic breakthrough, violence on the ground has not entirely ceased. While overall hostilities have declined, Israeli military strikes in southern Lebanon have continued, with state media reporting at least five fatalities since the deal’s announcement. The Israeli army also reported that five of its soldiers were wounded by an explosive drone impact in southern Lebanon, marking the first such casualty announcement since the truce was declared, alongside the interception of several rockets fired toward troops in the region.

Financial markets reacted with volatility to the diplomatic developments. Oil prices, which had tumbled in recent days on optimism for a lasting peace, briefly surged by five percent amid uncertainty surrounding the signing process before stabilizing later in the day as the terms of the agreement became clearer.

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As the two-month negotiating window begins, the international community will closely monitor the reopening of the Strait of Hormuz and the initial steps of uranium dilution.

-Thailand News (TN)