Trump signs preliminary peace deal with Iran in Versailles, ending Middle East conflict and pausing oil sanctions

Signing in Versailles

After a G7 summit in Évian-les-Bains, President Trump attended a dinner at the Palace of Versailles with French President Emmanuel Macron. Around 1 a.m. he emerged to tell reporters he had just signed a preliminary memorandum of understanding with Iran.

Signed. Signed in Versailles, I just signed it.

A US official told CNN that a photo of the signed memorandum was sent to the Iranian side. Iran's foreign ministry spokesman Esmail Baghaei confirmed President Masud Pezeszkian had signed the same document digitally.

The memorandum between Iran and the US has already been officially finalized, as both sides have signed it.

The document was drafted in English and Persian.

What the agreement includes

The memorandum orders an immediate and permanent halt to military operations on all fronts, including in Lebanon, and commits both nations to respect each other's sovereignty and territorial integrity. The US will begin lifting its naval blockade immediately and remove it entirely within 30 days, while Iran promises to prepare safe passage for merchant vessels through the Strait of Hormuz. American forces will also withdraw from the neighbourhood of Iran within 30 days of a final deal. Sanctions on Iranian oil are temporarily suspended, allowing crude sales to resume during the 60-day negotiation window. A comprehensive final agreement is to be reached within 60 days, which would lift all remaining sanctions, unfreeze assets, and establish a reconstruction fund for Iran worth over $300 billion. The preliminary text notes that Iran's stockpile of around 440 kg of enriched uranium will be at least diluted, without fully resolving the nuclear programme.

Oil market and economic impact

Crude prices fell sharply on the news. West Texas Intermediate for July delivery dropped 2.50% to $74.87 per barrel on NYMEX, while Brent for August slid 2.15% to $77.84. Analysts say the easy part was the deal itself; the harder question is how lasting the recent shipping disruptions will be.

The easy part was reaching a US-Iran deal, but the harder part is determining to what extent transport disruptions over the last few months will become permanent.

Goldman Sachs estimates that exports from the Persian Gulf will "normalize" by the end of next month, but flows may recover only to 70% of pre-war levels. Despite the price drop, US crude inventories remain tight: the Department of Energy reported a weekly decline of 8.26 million barrels to 418.22 million barrels, with stocks at the Cushing hub falling to around 20 million barrels.

Phases of the deal

The memorandum sets a clear sequence of steps, starting from the immediate ceasefire and moving through the restoration of shipping and the broader diplomatic process.

1. Jun 18, 2026Trump and Pezeszkian sign the memorandum in Versailles and digitally; immediate ceasefire on all fronts begins.
2. Jul 18, 2026US to lift its naval blockade fully; Strait of Hormuz restored to proportional pre-war traffic.
3. Aug 17, 2026Deadline for final comprehensive agreement covering nuclear programme, full sanctions lift, and reconstruction fund.

Next steps

A formal signing ceremony planned for Friday in Switzerland was cancelled, but negotiators from both sides will still gather in the country. The White House declined to comment on the ceremony. Earlier in the day, Trump had said the deal would be signed within 48 hours by Vice President J.D. Vance, but the president himself later inked it in Versailles. The 60-day talks on Iran's nuclear programme are now the central diplomatic focus, with sanctions relief tied to progress at the negotiating table.