Trump Signs Historic Peace Agreement with Iran, Marking a Major Shift in Middle East Diplomacy

On 18 June 2026, the United States and Iran signed a groundbreaking Memorandum of Understanding (MoU) that contains 14 key points.The pact was signed at the G7 Summit in France after days of talks, and it seeks to put a stop to months of conflict in the Middle East. The agreement aims to restore peace and stability in the region, defuse the possibility of a wider conflict, and guarantee one of the world's vital energy straits, the Strait of Hormuz. The signing has been hailed by several of the G-7 countries, but has also attracted criticism from political leaders in the United States and Israel.

Both sides agreed to a ceasefire and to not start new military operations against one another. The U.S. would start to ease the sanctions in stages, unfreeze some Iranian assets, end its naval blockade and allow the reopening of the Strait of Hormuz for international shipping. In exchange, Iran would not build nuclear weapons, agree to open up its nuclear program to international monitoring, and agree to a reduction of its stockpile of enriched uranium under international supervision. But Iran can continue to enrich civilian uranium under international supervision and the terms don't call for the immediate dismantling of its ballistic missile programme, among the most contentious aspects of the deal.

The deal likely to have far-reaching geopolitical and economic effects. The opening of the Strait of Hormuz should help to boost domestic energy supplies and to relieve oil markets of the pressures of the coming months, particularly in countries that import oil, like India. But it's not clear how it will be implemented, given that President Trump has threatened the U.S. will take military action against Iran if it breaches the deal. Many details remain to be worked out during the next few weeks and analysts say the MoU is a crucial first step, but no peace settlement. Whether it will succeed or not will be determined by the extent to which both sides will keep their promises and establish trust after decades of antagonism.