Trump announces signed US-Iran ceasefire deal at G7, Strait of Hormuz set to reopen

A deal announced at the G7

On Monday, US President Donald Trump arrived at the G7 summit in Evian‑les‑Bains, France, and, standing alongside French President Emmanuel Macron, declared that the United States and Iran had signed a memorandum of understanding to end the three‑month Gulf war. “The agreement is completely signed. And the strait is already partially open,” Trump told reporters, referring to the Strait of Hormuz, the vital energy chokepoint that Iran had effectively closed since March. The deal was brokered with active Pakistani mediation, and Prime Minister Shehbaz Sharif first announced the breakthrough late Sunday.

What the agreement contains

The accord, signed digitally by Trump, Vice President JD Vance, and Iranian parliament speaker Mohammad Bagher Qalibaf, provides for the full reopening of the Strait of Hormuz, a 60‑day negotiating window, the return of international nuclear inspectors, and the elimination of Iran’s highly enriched uranium stockpile. “This is actually one of the essential parts of the agreement … it is very clearly stipulated in the memorandum,” Vance told NBC News, confirming inspectors would be allowed back. The US also committed to easing some sanctions on Tehran, although Trump cautioned that any relief is “a matter of behaviour.” The formal signing ceremony is scheduled for Friday in Geneva, after which the text is expected to be made public.

Oil markets cheer, but fragility remains

Crude prices reacted instantly: Brent crude, which had spiked to $120 per barrel during the conflict from around $70 before it, fell more than 4% to about $84 on Monday. “Ships of the world, start your engines. Let the oil flow!” Trump posted overnight. EU foreign policy chief Kaja Kallas welcomed the news, saying, “Everyone needs the Strait of Hormuz to remain open and this war to end.” Still, analysts caution that clearing the sea lane of mines, tanker congestion, and restoring normal output could take weeks or even months.

Israel and the Lebanon question

A major sticking point is Lebanon. Iran insists the ceasefire must be permanent and include all fronts, notably the fighting between Israel and Hezbollah. Israeli Prime Minister Benjamin Netanyahu, however, declared that his country retains full freedom to act in southern Lebanon, and Israeli drones continued to strike targets there even after the deal was announced. A senior US official clarified that the agreement “is a ceasefire and will not be a one‑way ceasefire,” meaning Israel can respond if attacked. Senate Democratic leader Chuck Schumer demanded transparency: “What exactly is in this ‘understanding’? … What have we actually gained here from Trump’s war?”

What happens next

Trump said he will now pivot to trying to end the war in Ukraine, citing a “very good conversation” with Presidents Zelensky and Putin. Meanwhile, the G7 leaders in Evian are set to discuss global trade imbalances, critical minerals supply chains outside China, and artificial intelligence. As the Friday signing approaches, contradictory signals from Tehran – including talk of eventually imposing transit tariffs on the strait and claims that $25 billion in frozen Iranian assets will be released – underline the fragility that Sky News correspondent Mark Stone captured: “We have been at this point a few times, and the ceasefire hasn’t held … Everything is very fragile, on a knife edge.”