US and Iran agree on preliminary deal to dilute enriched uranium, suspend sanctions, and end hostilities ahead of Friday signing in Switzerland

Ceasefire and nuclear framework

The U.S. draft MoU read to journalists on Wednesday establishes an immediate and permanent end to hostilities on all fronts, including Lebanon. All parties, the United States, Iran, and their respective allies, agree to cease military operations upon signing. The text includes a mechanism to manage Iranian enriched-uranium stocks “using, at minimum, an on-site dilution method under IAEA supervision.” In exchange, Washington will suspend, but not eliminate, some sanctions, with further relief tied to Tehran’s compliance on nuclear demands. A 60-day period for negotiating a final peace deal begins at signing.

“The United States of America and the Islamic Republic of Iran and their allies in the current war, upon signing this Memorandum of Understanding, declare the immediate and permanent cessation of military operations on all fronts, including in Lebanon.”

Trump’s warning and divergence with Israel

Speaking at the G7 summit in Evian, France, President Donald Trump threatened to resume bombing if the final deal fails to materialize.

“If it’s not signed within 60 days, no problem. We’ll bomb again.”

In the same press conference, he acknowledged tension with Israeli Prime Minister Benjamin Netanyahu.

“I told Bibi: you can be a little more diplomatic. You don't need to demolish a building every time someone from Hezbollah enters.”

U.S. Vice President JD Vance told reporters that the memorandum opens the Strait of Hormuz and is 

“fundamentally a good deal for the American people.”

Vance also stressed that the nuclear program has been destroyed, and the deal aims to prevent Iran from rebuilding it.

“We destroyed their nuclear program, but one of the President’s goals is to incentivize them not to try to rebuild it long term.”

Iran, signing ceremony, and reconstruction

Iran is examining the possibility of having Presidents Masoud Pezeshkian and Trump sign the MoU at Friday’s ceremony at a luxury resort on Lake Lucerne, according to foreign ministry spokesman Esmail Baghaei. That would be a significant diplomatic step for two nations whose formal ties were severed in 1980. Pezeshkian, who came to office pledging to improve relations with the West, has been sidelined in recent months amid a crackdown on protesters and as conservative leaders tightened control over the war negotiations. The MoU also provides for a post-war reconstruction and economic development fund worth at least $300 billion, although not funded directly by the United States. Iran can resume crude-oil sales once the memorandum is signed, and full sanctions relief will follow if a final nuclear agreement is reached after the 60-day period.

Hezbollah and Lebanese tensions

In parallel, Hezbollah Secretary-General Naim Qassem reiterated that any plan to disarm the Iranian-backed militia “will not be accepted,” insisting the issue is internal and must stay outside Israel-Lebanon peace talks. Qassem described the U.S.-Iran accord as 

“a great victory for Tehran and a crucial moment for Lebanon.”

Lebanese President Joseph Aoun, however, stressed his country’s independence in separate negotiations with Israel, while acknowledging any support for a ceasefire, including from Iran. The memorandum explicitly includes Lebanon in its cessation-of-hostilities clause, effectively requiring Iran to rein in Hezbollah, yet Israel retains the right to retaliate if Hezbollah attacks. A fifth round of Israel-Lebanon talks is scheduled in Washington next week, even as Hezbollah objects to the process.