Trump and Pezeshkian sign interim US-Iran deal at Versailles dinner, halting three-month war and opening Strait of Hormuz

Surprise at the palace

What was planned as a G7 dinner became the stage for the first US-Iran presidential accord since the 1979 revolution. French President Emmanuel Macron threw open Versailles for a private reception honouring America's 250th birthday, and Trump seized the moment. "We signed in Versailles," he told reporters as he left the dinner of lobster, caviar and vanilla ice cream. French Finance Minister Roland Lescure said the signing was a surprise even for cabinet members. "We cleared the plates," he recalled, after Secretary of State Marco Rubio left to print the document and returned.

Terms of the interim deal

The Islamabad Memorandum of Understanding, as the document sent to Congress calls it, declares an immediate and permanent end to military operations on all fronts, including Lebanon. The United States will fully lift its naval blockade of Iranian ports within 30 days, while Iran guarantees safe passage through the Strait of Hormuz at no charge for 60 days. Both sides commit to negotiate a final settlement within those 60 days, with an option to extend. Iran must also dilute its stockpile of highly enriched uranium, and US-backed sanctions are waived, allowing Tehran to sell oil freely. The deal takes effect immediately.

The road to signing

Pakistani mediators, later joined by Qatar, spent weeks juggling late-night calls and shifting demands.

“There were many moments during the negotiations when it looked as if the process would grind to a halt.”

Disagreements flared over single words: a 45-minute debate in late May reportedly turned on whether to use "etc." or "including." On Sunday, Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf signed the memorandum digitally while Trump looked on. By Monday morning, Pakistani Prime Minister Shehbaz Sharif announced the accord, and Iran reopened the Strait. On Wednesday, Trump and Pezeshkian each signed paper copies, setting the seal on the interim framework.

Israel and regional reactions

Israeli analyst Danny Citrinowicz called the deal a strategic catastrophe.

“We went to topple the regime with US backing and ended with Washington effectively giving legitimacy and strengthening the same regime we wanted to bring down.”

The accord, he said, imposes no curbs on Iran's missile programme or its proxies and offers no path to dismantling nuclear facilities. Israel's campaign in Lebanon is also constrained by the ceasefire framework. The agreement undercuts Prime Minister Netanyahu's narrative and exposes the limits of his leverage with a US president often seen as a close ally.

What comes next

A 60-day negotiation window is now open, and the hardest part may lie ahead.

“Washington and Tehran appear to have different interpretations of the same text. Iran will try to turn ambiguity into leverage, while the US will try to preserve pressure until nuclear concessions are secured.”

A formal signing ceremony is still scheduled for Friday in Switzerland, hosted by Pakistan with Qatar as co-mediator. Whether the interim deal becomes a permanent settlement depends on bridging gaps over sanctions relief, the Strait of Hormuz regime and the future of Iran's nuclear programme.