US President Donald Trump signed a landmark peace agreement with Iran at the Palace of Versailles on Wednesday in a major diplomatic breakthrough to end hostilities, reopen the Strait of Hormuz and begin negotiations on a broader settlement involving sanctions and Iran’s nuclear programme. The accord, formally known as the Islamabad Memorandum of Understanding, was signed by Trump and Iranian President Masoud Pezeshkian after weeks of negotiations.
Earlier in the day, Trump had indicated that the deal was close to completion. “I’d say 48 hours,” he told reporters in Paris when asked about the timeline for the agreement
Hours later, after attending a dinner hosted by French President Emmanuel Macron at Versailles, Trump confirmed the signing.
“It’s signed,” he told reporters. I signed it in Versailles. Just signed it.”
The agreement establishes a framework for further negotiations between Washington and Tehran while seeking to ease tensions across the Gulf and restore normal shipping through the Strait of Hormuz, one of the world’s most strategically important energy routes.
‘A step towards stability’
Throughout the day, Trump described the agreement as a significant step towards regional peace and greater stability in global energy markets.
Asked how long American military forces would remain in the Gulf, he said, “I would say a little while, see how it all goes. I think it’s going to go well, but we’ll see.”
Trump maintained that preventing Iran from obtaining a nuclear weapon remained the central objective of US policy. Addressing concerns about Iran’s existing nuclear material, he said: “Much less important than not having a nuclear weapon.”
The US president also signalled flexibility over the memorandum’s reported 60-day deadline for reaching a broader settlement. “I don’t view it as hard, no,” Trump said, adding, “Just as long as they’re behaving, I really don’t care that much.”
At the same time, he warned that military action remained a possibility if Iran failed to honour its commitments.
“If they don’t come through, is it a threat that we’d bomb? You can call whatever you want, but it will probably happen,” he said.
Trump also distinguished between nuclear weapons and conventional missile capabilities, suggesting Iran could retain some ballistic missile capacity if neighbouring countries possessed similar systems.”I’m saying that if other countries have them, it’s a little bit unfair for them not to have some,” he said.
“A ballistic missile is not the same thing as what we’re talking about when we talk nuclear.”
“But if Saudi Arabia and Qatar and they all have some, I would say in relative proportion, I think it’s OK.”
Signing at Versailles
The signing took place during a dinner hosted by Macron following the G7 Summit.
Moments before putting pen to paper, Trump told those gathered, “This was not easy, that I can tell you.”Video footage from the event showed Macron, US Secretary of State Marco Rubio and other guests applauding after the agreement was signed.
The Iranian Embassy in India later shared photographs showing President Pezeshkian holding the signed document.
What the agreement contains
The 14-point memorandum calls for an immediate cessation of military operations, including in Lebanon, and commits both sides to working towards a final agreement within 60 days.
It provides for the lifting of the US naval blockade, the reopening of the Strait of Hormuz to commercial shipping, phased sanctions relief, the release of frozen Iranian assets and a US-backed economic development programme for Iran worth at least USD 300 billion. The agreement also records Iran’s commitment not to develop or acquire nuclear weapons and envisages future discussions on enriched uranium stockpiles under the supervision of the International Atomic Energy Agency (IAEA).
Iran says implementation is the next test
Iranian Foreign Ministry spokesperson Esmaeil Baqaei confirmed the signing and said the focus would now shift to implementation.
“The text of the Islamabad Memorandum of Understanding was finalised with the signatures of the presidents; now it is time to test the implementation of the agreement,” he said.
Iran’s chief negotiator, Mohammad Bagher Ghalibaf, said Tehran was entering the next phase from what he described as a position of strength. “The difference between the current negotiations and previous periods is that today, this banner of battlefield victory, which both enemies and friends have acknowledged, serves as the backing for negotiations,” he told Press TV.
“Every war that ends in victory, if it does not ultimately lead to a legal and political document and those victories are not recorded, will bring no benefit.”
International reaction
World leaders welcomed the breakthrough, with Macron describing it as a positive development for regional security and global energy markets.
“President Trump signed tonight at Versailles the agreement between Iran and the United States. This agreement paves the way for lasting peace and allows the reopening of the Strait of Hormuz. It is an important step in the right direction for our compatriots that will soon enable a decrease in energy prices,” Macron wrote on X.
Pakistan also welcomed the agreement. Prime Minister Shehbaz Sharif said the deal demonstrated the commitment of both countries to a diplomatic resolution of the conflict.
“Islamabad MoU shall enter into force with immediate effect and as a first step, the Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade,” he wrote on X.
Sharif also congratulated Trump, praising what he described as the US president’s commitment to diplomacy and peaceful conflict resolution.
The agreement marks the most significant development in US-Iran relations in years and opens a crucial new chapter in efforts to reduce tensions across the Middle East.
