US President Donald Trump and Iran's president signed a deal Wednesday to end the Middle East war. The signing happened during a candlelit dinner at the Palace of Versailles after a G7 summit. French President Emmanuel Macron and other guests applauded as Trump put his signature to the memorandum of understanding.
"Just signed it," Trump told reporters as he walked out of the palace.
Iran's Foreign Ministry spokesman Esmaeil Baqaei confirmed the document "was finalized with the signatures of the presidents." Pakistan's Prime Minister Shehbaz Sharif, who mediated the agreement, said on X that the deal "shall enter into force with immediate effect."
The war started on February 28 when the United States and Israel launched attacks on Iran. Iran responded with missiles and drones, and effectively shut down the Strait of Hormuz — a critical waterway for global oil shipments. The US then blocked shipping to and from Iranian ports.
Under the deal, Iran will instantly reopen the Strait of Hormuz, and the US will immediately lift its naval blockade. Washington also commits to waive oil sanctions that have crippled Iran's economy. Once a final agreement is reached on Iran's nuclear program, the US will help release a $300 billion reconstruction fund supported by regional nations.
The agreement was originally meant to be signed by Iran's chief negotiator and parliament speaker, Mohammad Bagher Ghalibaf, and US Vice President JD Vance. Iran said an in-person ceremony wasn't needed. But Sharif said an official ceremony will take place Friday in Switzerland, and technical talks will start.
Iran's Ghalibaf called the deal a US "failure." "People will see it and judge," he said on state television.
China said its top diplomat had impressed on Tehran that it was "key" for all sides to "genuinely implement" their commitments.
But the deal has upset some of Trump's own allies. US Senator Bill Cassidy, a Republican, was harsh. "Iran's nuclear ambitions were not curbed, and they have learned that threatening the Strait of Hormuz works," he said. "Sanctions will be lifted, and the bombing has stopped. This is the worst foreign policy blunder in decades."
Hezbollah leader Naim Qassem described the deal as a "great victory" for Iran. He thanked Tehran for insisting that the truce cover Lebanon, which entered the conflict when Hezbollah fired rockets at Israel on March 2.
A two-month negotiating period now begins. Iran will dilute its enriched uranium stocks — possibly by "down-blending on site under the supervision of the IAEA," the UN's nuclear watchdog. This will lead to more economic assistance for Iran. A US official said Washington won't be required to contribute money.
Oil prices had fallen in recent days as optimism grew for peace, but jumped five percent briefly on Wednesday as uncertainty spread about the signing.
In Lebanon, violence declined after the deal was announced. But Israeli strikes on the south have killed at least five people since then, according to state media. Israel's army said five soldiers were wounded Wednesday, one severely, by an explosive drone in southern Lebanon — the first such announcement since the US-Iran deal. The Israeli military also said it intercepted rockets fired toward soldiers in south Lebanon.
Trump said earlier Wednesday that he was prepared to "bomb the hell" out of Iran if they violate the agreement. The deal is a temporary arrangement to allow time for detailed negotiations on long-term control of Iran's nuclear program, which the US has long suspected of harboring a secret bomb-making effort.