Corrections and clarifications: A previous version of this story said that the administration had released the text of the interim U.S.-Iran agreement. The agreement was read aloud by a senior administration official on a call with reporters.
The interim U.S.-Iran agreement, hailed by President Donald Trump and world leaders as a major step toward peace in the Middle East, was signed remotely on Wednesday by the United States and Iran, a White House official confirmed to USA TODAY.
The signing of the memorandum comes ahead of an expected signing on Friday in Switzerland, and as a result, provisions including the opening of the Strait of Hormuz are expected to take effect immediately. Trump indicated he also signed a physical version of the agreement on Wednesday.
The agreement calls for an immediate end to hostilities on all fronts, including Lebanon, and sets out expectations for the next phase of talks, which will tackle more challenging issues, mainly the future of Iran’s nuclear program.
The text of the 14-point agreement was read by a senior administration official in a call with reporters on Wednesday.
The agreement spells out sanctions relief for Iran and calls for the creation of a $300 billion economic development fund. Trump repeatedly denied on Wednesday that the United States would be paying into the fund, though he said that Gulf allies could do so if they wanted to.
Trump, speaking to reporters Wednesday at the conclusion of a Group of Seven conference, also said that the United States will “go back to bombing” if Tehran does not abide by the conditions set out in the preliminary deal or if negotiations fail to produce a long-term agreement that prevents the country from producing a nuclear weapon.
Michael Loria
The Trump administration has remotely signed a memorandum of understanding with Iran aimed at ending the war, a White House official confirmed to USA TODAY.
Trump’s move to sign the memorandum comes ahead of the expected signing Friday in Switzerland. As a result, provisions including the opening of the Strait of Hormuz are expected to take effect immediately.
White House confirmation of the signing follows earlier reporting on the remote signing by Reuters and Axios.
According to Iranian state media, the signatories were President Donald Trump and Iranian President Masoud Pezeshkian.
Iran Foreign Ministry spokesperson Esmaeil Baghaei said the country moved to sign the deal digitally as it ensured that the top leaders of both nations were directly involved.
“When a text is signed by the highest officials of the two countries, naturally its violation carries higher costs, and given our experience we preferred this to happen,” Baghaei said, according to state media. “We also concluded that holding a ceremony was not really necessary.”
Zachary Schermele
Sen. Bill Cassidy, R-Louisiana, pulled no punches in denouncing the contours of the reported agreement, saying, “Reagan is rolling over in his grave.”
“Before the war, the strait was open, Iran was being crushed by sanctions, and 13 service members were still alive,” he wrote in a social media post. “Now, 13 Americans are dead, families have paid billions at the pump, sanctions will be lifted, and the bombing has stopped.”
“This is the worst foreign policy blunder in decades,” he said.
Christopher Cann
Details of the U.S.-Iran memorandum of understanding were shared by a senior administration official in a call with reporters Wednesday. Here are the main points:
The deal calls for an end to hostilities on all fronts, including Lebanon, as well as a reopening of the Strait of Hormuz within 30 days, with the U.S. ending its blockade and Iran making efforts to ensure the “safe passage of commercial vessels with no charge.”
Under the agreement, U.S. forces within proximity of Iran will be removed “within 30 days after the final deal.”
Furthermore, the U.S. and regional partners will “develop a definitive, mutually agreed plan with at least USD 300 billion for the reconstruction and economic development of the Islamic Republic of Iran.” The U.S. will also “terminate all types of sanctions” against Iran in “an agreed upon schedule as part of the final deal.”
On the nuclear question, the memorandum says Iran “reaffirms that it shall not procure or develop nuclear weapons” and that the two countries agreed to “resolve the disposition of stockpile enriched material pursuant to a mechanism that will be mutually agreed upon.”
Bart Jansen
Asked about the bombing of an Iranian school early in the war, which killed more than 100 children, Trump said it was still under investigation but that nobody should be blamed.
“Nobody did that on purpose,” Trump said. “Mistakes are made. War is nasty. But I know it’s under investigation.”
Trump called it “strange” that he was asked if anyone in his administration would be held accountable. His rebuttal if the U.S. military was at fault was that Iran had killed thousands of soldiers killed by roadside bombs.
Christopher Cann
President Donald Trump on Wednesday said the U.S. has taken a lot of Iran’s money and “at some point” will have to give it back.
“We have taken their money. It’s not our money,” he said at the G7 in France. “It’s their money and we froze it. At a certain point in time I guess we have to give it back.”
Trump argued that not returning Iran’s frozen assets could result in countries not investing in the U.S. dollar. The Obama administration made a similar argument in unfreezing foreign assets under the 2015 Joint Comprehensive Plan of Action agreement, which Trump has repeatedly criticized.
Francesca Chambers
Trump thanked Russian President Vladimir Putin and Chinese President Xi Jinping at the news conference for staying “neutral” in the war and declining to lend their military might to partner nation Iran.
“They could have made it much more difficult for us,” Trump told reporters during his news conference.
Christopher Cann
President Donald Trump on Wednesday said Lebanon’s leaders will “be coming over to see us very shortly over the next week or two.”
Trump said the meeting will come after Iran signs an interim agreement that will call for an end to hostilities on all fronts, including in Lebanon, where Israel is at war with Iran-backed Hezbollah.
“So the Lebanon piece is something we’ll have to work on a little bit,” Trump said at the G7. “It’s a very small piece of the puzzle, but it still makes a lot of noise.”
Trump repeatedly criticized Israel’s handling of its military campaign against Hezbollah. “[Israel] could do a much better job with Hezbollah. On that, I don’t think they’re doing well,” Trump said.
Swapna Venugopal Ramaswamy
President Trump said the maritime traffic through the Strait of Hormuz had already increased substantially after the preliminary agreement with Iran. He said a “normal flow of energy” will resume in the days ahead.
Iran’s military closed of the Strait of Hormuz after the U.S and Israel launched joint airstrikes on Iran in February. Iran’s blockade of the strait, which carried about 20% of the world’s oil supply before the war, has throttled traffic through the critical oil shipping channel, driving up fuel prices and threatening the global economy.
Trump said the reopening of the strait will make help the world economy and stock markets everywhere.
“The only difference is that it’s a player that’s very volatile, very tough, very smart,” he said talking about negotiations with Iran. “They have in one way a primitive culture. But it’s also a genius primitive culture. They’re very smart people, very good negotiators.”
Natalie Neysa Alund
World leaders at the G7 summit on Wednesday, June 17, said they welcomed the agreement the United States is set to formally sign with Iran later in the week, which halts the war and advance talks to end Iran’s nuclear program.
In a statement, the G7 leaders also called for a ceasefire in Lebanon, where Israel has been enacting a military campaign against Hezbollah.
“We underline the need for the negotiation … to address the threats posed by Iran in the region and beyond and ensure that they never obtain a nuclear weapon,” the leaders said in a statement.
Christopher Cann
President Donald Trump on Wednesday said if Iran does not agree to a long-lasting deal in 60 days, the U.S. will resume its military campaign.
“It’s a memorandum of understanding,” Trump said at the G7. “If it doesn’t get done in 60 days, that’s alright, we go back to bombing.”
He said an interim agreement will be signed at a ceremony this week before a second phase of negotiations will take place.
Christopher Cann
President Donald Trump on Wednesday again acknowledged the recent disagreement between him and Israeli Prime Minister Benjamin Netanyahu over Israel’s military campaign in Lebanon.
“We have a little dispute over Lebanon,” Trump said at the G7 summit in France. “I say, ‘You do a little softer touch, Bibi. You don’t have to knock down a building every time someone walks into it who’s from Hezbollah.’”
Iran has said any peace agreement with the U.S. must involve Israel halting attacks on Lebanon and removing ground troops from the Middle Eastern country. Netanyahu vowed to keep his soldiers in southern Lebanon and said Israel will respond to any attacks from Hezbollah.
Natalie Neysa Alund
U.S. President Donald Trump, speaking during a press conference Wednesday, June 17, at the summit, told reporters the war with Iran got very expensive over a 48-hour period this week.
“Those last two days were brutal… $200 million worth of bombs,” Trump said. “And it’s expensive too, aside from everything else.”
Francesca Chambers
Trump said the U.S. would not join Gulf allies in financing Iran’s rehabilitation, telling reporters at the G7 that America would not contribute to the fund.
Draft text of the memorandum of understanding that the U.S. and Iran signed suggested that America would make a financial contribution to Tehran’s reconstruction.
But the president denied on Wednesday that the U.S. would take part. “We are not investing in it, and we do not have a fund,” Trump said.
Trump said he was not asking Gulf allies to invest, either, although they could if they wanted to. “That’s a false story, that got picked up incorrectly,” Trump said. “We are not investing 10 cents.”
The agreement is a preliminary one. Technical aspects like the distribution of the investment funds are still being negotiated as part of a longer-term agreement that’s expected to include Iran’s nuclear program.
“If I don’t like it, we’ll go back to shooting at them, dropping bombs on their head,” Trump said at the G7. “If I don’t like it, if they don’t behave, we’ll go right back to dropping bombs, right smack in the middle of their head.”
Andrea Riquier
Brent crude oil ticked higher Wednesday after several days of declines, averaging about $81.25 per barrel in the late morning.
Gas prices, which lag a bit behind changes in the oil price, continued to fall. The nationwide average for a gallon of unleaded was $3.987, GasBuddy reported.
For investors, all eyes are on the Federal Reserve, which will announce its latest monetary policy decisions later this afternoon. The central bank is almost universally expected to make very few changes, but investors want to know how policymakers view the inflation that the war has caused.
“So far the impact on inflation looks more like the usual passthrough from large oil shocks than the pandemic’s wide-ranging shortages and price spikes,” said analysts at Goldman Sachs in a note previewing the June 17 meeting.
Bond yields were roughly flat Wednesday. “Treasury yields have declined this week in reaction to the latest Middle East developments, but the reaction has been modest so far,” Oxford Economics Lead Analyst John Canavan wrote in a note out Wednesday.
“While lower oil prices will lessen the inflationary squeeze on households’ real incomes at the margin, it will still take time for shipping in the Strait of Hormuz to approach pre-war levels,” Canavan added.
Christopher Cann
President Donald Trump said he believes Iran will sign the memorandum of understanding at a ceremony this Friday but added that there’s always a chance things fall through.
“I’ve gone into deals that were 100%, and they don’t happen. I’ve gone into deals that there’s no chance of getting them done, and it happens, and they happen easily,” he said while taking questions following a bilateral meeting with Indian Prime Minister Narendra Modi. “You never know with deals, but you’re going to find out pretty soon.”
“I think it’ll be done, they want to sign,” he added.
Christopher Cann
President Donald Trump on Wednesday said he wants Israel to defend itself but wants the country to use “good judgement.”
His comments come as Israel’s military campaign against Hezbollah in Lebanon has complicated peace efforts between the U.S. and Iran.
Iran said any sustained peace deal must involve Israel ending its military campaign in Lebanon and removing ground troops from the country. Israeli Prime Minister Benjamin Netanyahu has said ground troops will not leave southern Lebanon, where more than 1 million people have been displaced, and added that Israel will respond to any future attacks by Hezbollah.
President Donald Trump on Tuesday expressed frustration at Israel’s military actions, saying he’s “not happy with the way Israel has handled themselves.” He added that the fighting has been going on “too long and too many people are being killed.”
Christopher Cann
Indian Prime Minister Narendra Modi said on Wednesday that he and President Donald Trump agree on the need to keep the Strait of Hormuz open and thanked the president for his efforts to obtain a sustained peace in the Middle East.
Modi highlighted the safety of Indian seafarers, which he described as critical to freedom of navigation in the vital trade passage.
The prime minister’s comments come a week after three Indian seafarers were killed in U.S. strikes on a vessel in the Strait of Hormuz.
Francesca Chambers
Before he departs France for the U.S., Trump will hold a news conference. He’s expected to speak to press at approximately 10:30 am EDT from the G7 Summit.
He’ll travel to Paris immediately afterward ahead of a dinner with French President Emmanuel Macron at the Palace of Versailles.
At the news conference, Trump is expected to come under intense questioning about a leaked draft of his preliminary agreement with Iran, which was circulating on Wednesday at the summit for the leaders of the world’s most advanced economies.
Trump insisted during a meeting with Egypt’s president that details in the leaked document were false, including a commitment from the U.S. to work with regional allies to invest at least $300 billion in Iran’s rehabilitation and development.
Christopher Cann
Lebanese President Joseph Aoun said on Wednesday that his country has an “independent track” in negotiations and is in favor of a ceasefire.
“The Lebanese state is conducting the negotiations, and it is sovereign in its decision-making. No one takes its place, and any settlement will be through Lebanon, not at its expense,” Aoun said.
He added that Lebanon is “certainly in favor of a ceasefire and of any country that helps us, including Iran.”
His comments come as Israel’s military operation against Hezbollah in Lebanon remains a major hurdle in negotiations between the U.S. and Iran. Tehran has said a deal must end the military campaign and lead to the removal of Israeli ground forces in southern Lebanon. Israeli officials say troops will not withdraw and that they reserve the right to respond to attacks from Hezbollah.
Francesca Chambers
In the draft of the preliminary agreement, Iran committed to never producing a nuclear weapon — but the two countries punted on the fate of Tehran’s enriched uranium and other nuclear-related issues until negotiations on a final agreement.
Trump’s administration pledged in return to end sanctions on Iran “on a schedule to be agreed upon” in the final agreement and committed to helping with the rehabilitation and economic development of Iran. The draft calls for the creation of a comprehensive plan that provides Iran with at least $300 billion in development funding, with the mechanism for distribution to be discussed as part of final negotiations and worked out with regional partners, who could contribute to the financing.
“The United States undertakes that immediately after the signing of this Memorandum of Understanding, and until the date of the lifting of sanctions, the United States Treasury Department will issue waivers for exports of Iranian crude oil, petrochemical products and their derivatives, and all related services, including banking, insurance, transportation, and the like,” the draft agreement adds.
Francesca Chambers
Draft text of the memorandum that Trump and Vice President JD Vance reportedly signed commits the U.S. to lifting its naval blockade on the Strait of Hormuz and restoring traffic within 30 days to its full capacity.
“The traffic of ships shall be proportional to the pre-war volume of traffic on the part of the Islamic Republic of Iran. The United States also undertakes to withdraw its forces from the surrounding areas within 30 days after the final agreement,” the text says,according to CNN.
Bloomberg also obtained a copy of the memorandum, which gives negotiators a “maximum period of 60 days, extendable by mutual consent” to firm up the details of a final agreement.
USA TODAY has not verified the contents of the draft, and the White House did not immediately respond to a request for comment.
Zachary Schermele and Francesca Chambers
In the days after President Trump announced an emerging peace deal with Iran, Congress has been largely in the dark about it.
Lawmakers on both sides of the aisle seemed frustrated with the lack of concrete details from the White House – especially because, as many noted, any potential nuclear accord would most likely come through Capitol Hill.
“If it’s a secret deal, then how can I take it seriously?” said retiring Sen. Thom Tillis, R-North Carolina.
He was far from the only Republican senator eager to be clued into the ongoing talks after the U.S. signed a memorandum of understanding with Iran.
Trump’s communications with GOP lawmakers regarding talks have been vague. A memo Trump sent to Republicans regarding Washington’s pact with Tehran gave few details.
“American families are safer and will feel relief at the pump,” the memo, obtained by USA TODAY, stressed to Republicans. “There is more work ahead to reach the final deal, but no President other than Trump could have brought us this far.”
White House officials also told their Capitol Hill allies to emphasize that “Iran will never have a nuclear weapon” and there would be “no forever war.”
Read more here about Congress’ ongoing efforts to get involved in the deal before it is finalized.