The United States and Iran have signed a deal to end the Middle East war, with
a ceremony set for Friday in Switzerland that will mark the start of a 60-day
negotiation period.
The memorandum of understanding aims to put an end to months of conflict
initiated by US-Israeli strikes on Iran in February, which wreaked chaos across
the region and rattled the global economy.
Oil prices fell more than two percent on Thursday, extending the losses
sustained since news of the deal broke at the weekend.
International benchmark Brent North Sea crude was down 2.1 percent to $77.87
a barrel as of 0525 GMT.
US President Donald Trump signed the memorandum of understanding on
Wednesday after he attended the G7 summit in France, during a candlelit dinner
at the Palace of Versailles, according to a video posted by a Trump aide.
Iranian Foreign Ministry spokesman Esmaeil Baqaei, quoted by the state news
agency IRNA, said the document “was finalised with the signatures of the
presidents”.
Iran’s chief negotiator and parliament speaker, Mohammad Bagher Ghalibaf,
said the deal represented a US “failure”.
The memorandum “shall enter into force with immediate effect and as a first
step, Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the
United States of America will immediately lift the naval blockade”, Pakistan’s
Prime Minister Shehbaz Sharif wrote on X.
Sharif also confirmed that Pakistan, with Qatari support, would host a ceremony
in Switzerland on Friday to “commemorate this landmark event and commence
with the technical level talks”.
Tehran reiterated its plans to charge ships crossing the Strait of Hormuz after
the 60-day period stipulated in the document had elapsed.
Iran’s chief negotiator Ghalibaf said in an interview aired on state television that
the “Strait of Hormuz will not return to pre-war conditions”, adding: “Iran has
the right to sovereignty over the Strait of Hormuz and of course we will receive
a fee for services.”
The document says Tehran has agreed to dilute its enriched uranium stockpile
under UN supervision, which one US official described as a “major, major
win”.
Iran has repeatedly insisted that nuclear issues would only be discussed in
subsequent talks after the initial deal is signed.
The agreement allows Tehran to resume oil sales, while all sanctions will be
lifted if a final deal is reached after the 60-day negotiation period. Iran could
also get access to a $300 billion reconstruction fund, though officials said
Washington was under no commitment to contribute.
Trump warned Iran on Wednesday that he was ready to resume military action
if Tehran did not abide by its obligations. “If they don’t behave, we’ll go right
back to dropping bombs right smack in the middle of their head,” Trump said at
the G7 summit.