Trump, Iran sign agreement that U.S. claims will dilute Tehran’s uranium, open Strait of Hormuz

Prime Minister Mark Carney praised the Iran agreement and signaled Canada could help with rebuilding efforts. Mike Le Couteur reports.

WASHINGTON — President Donald Trump signed an agreement with Iran Wednesday that calls for Tehran to dilute its stockpile of highly enriched uranium and waives U.S.-backed sanctions on the country, immediately allowing Iran to sell its oil freely in a major concession from Washington, according to details released by both countries.

The initial deal to end the war takes “immediate effect” after leaders from both countries signed it, Pakistani Prime Minister Shehbaz Sharif, who helped mediate the agreement, said in a post on X.

The agreement calls for a permanent end to hostilities and starts a 60-day negotiating clock to reach a final deal on the future of Iran’s nuclear program, though Trump left the door open to resume attacks. It appears to offer Iran several benefits up front while extracting little in return.

The deal has been shrouded in secrecy and confusion for days. U.S. officials refused to disclose the terms even after saying Trump and Vice President JD Vance digitally signed it over the weekend. Trump signed a physical copy on Wednesday while dining with French President Emmanuel Macron at Versailles, the palace where many historic agreements have been signed over the centuries, ending wars or territorial disputes.

The White House had planned a signing ceremony on Friday in Switzerland, but its fate is now uncertain, with conflicting information from the U.S., Iran and Pakistan.

“It’s signed,” Trump said as he left the dinner at Versailles, which followed his trip to the Group of Seven summit in France.

In a video posted online by a White House aide, Trump was seen seated at a table next to Macron signing a paper copy of the agreement. Trump then handed the document and pen to Secretary of State Marco Rubio as people in the room applauded.

“This was not easy,” Trump said right before he signed it, according to a video posted to social media by Macron.

Text of the agreement still has not been formally released. U.S. officials dictated draft language to journalists after days of secrecy, speaking on condition of anonymity. Iranian state TV later released text that largely tracked what the U.S. put out.

“Once the text is signed by the highest-ranking officials of the two countries, naturally the cost of violating it becomes greater,” Iranian Foreign Ministry spokesperson Esmail Baghaei said on state TV.

The deal will stop the fighting and start more negotiations

Much of the agreement would restore the status quo before the war, including ending hostilities, restarting talks between the U.S. and Iran over Tehran’s nuclear program, and reopening the the Strait of Hormuz, the crucial passage for the world’s oil and natural gas whose closure created a historic energy crisis.

The agreement opens the strait without tolls for two months, but does not preclude fees in the future, according to the drafts from both countries.

In return, the U.S. will move to waive, but not eliminate, some wide-ranging sanctions against Iran.

The deal also affirms a commitment to Lebanon’s territorial integrity in the face of Israel’s invasion against the Hezbollah militant group. That is one of the most delicate parts of the agreement because Israel has maintained it will continue to defend itself and to occupy vast swaths of Lebanon. Iran has said Israel must withdraw under the deal, a condition Israel has already rejected.

The U.S. and Israel went to war on Feb. 28 in part to prevent Iran from ever getting a nuclear weapon. Trump has cited various goals for the war, including at times vowing it would end Iran’s nuclear and missile programs and its support for Hezbollah and other proxy groups in the region. He also suggested it could lead to toppling the Iranian government.

The interim deal falls short of all those goals, but Trump hailed it Wednesday as “very strong.”

He also opened the door to abandoning it: “It’s a memorandum of understanding, and if I don’t like it, we’ll go back to shooting at them, dropping bombs.”

The U.S. agreement to immediately allow Iran to sell its oil freely and the offer to eventually lift all sanctions represent major concessions that go beyond the terms of Iran’s 2015 nuclear deal with world powers. Trump withdrew America from that Obama-era pact in his first term, declaring it the “worst deal ever.”

The Islamic Republic maintains that its nuclear program is peaceful.

The accord likely will draw intense opposition in Washington, and it appears to be a major setback for Israeli Prime Minister Benjamin Netanyahu, who has come under criticism at home from the media, his opponents and even some allies as details emerge.

Under the Obama-era nuclear agreement with Iran that Trump pulled out of, Iran also agreed to restrictions on its nuclear program and promised never to build an atomic weapon.

Major concessions have been offered to Iran

Some concessions to Iran -- including the full lifting of sanctions and the release of frozen assets -- would happen gradually and be linked to progress in the nuclear talks, according to officials from Pakistan, a key mediator. They outlined some of the deal’s major points on condition of anonymity because of the sensitivity of the issue.

But in the meantime, the U.S. will issue waivers to sanctions that allow Iran to sell oil freely.

The Islamic Republic’s oil export revenues in 2024 were more than $46 billion. Its main buyer of oil, China, is believed to have bought at below-market prices because of its willingness to ignore the sanctions.

Granting oil waivers at the start of the 60-day talks strips the U.S. of a major point of leverage. Only at the conclusion of the overall deal in 2015 were sanctions on Iran’s oil lifted.

The interim deal also opens the door to ending all sanctions Iran faces from the U.S. and at the U.N. -- including those over Tehran’s weapons programs and human rights abuses -- though it says the schedule for that will be worked out later. Still, that far surpasses the 2015 deal, which only lifted some sanctions in exchange for Iran drastically reducing its enrichment and stockpile of uranium.

The accord would also provide Iran with at least $300 billion to rebuild -- an extraordinary figure and another major benefit for Iran. The money also appears dependent on the progress of further negotiations.

Vance has said Gulf Arab nations would invest that amount. But Gulf countries would likely be reluctant to help Iran after Iranian attacks in the war destroyed oil facilities and other sites in their territory.

Trump reiterated Wednesday that the U.S. would not contribute and said it was up to other countries if they wanted to invest.

The pact would provide relief to the global economy

The initial deal provides a major win for the global economy -- the reopening of the Strait of Hormuz, the narrow mouth of the Persian Gulf through which a fifth of all traded oil and natural gas once passed before the war began. Since then, Iranian attacks on shipping and the threat to vessels effectively shut the strait.

The strait’s closure drove up energy prices around the world and made many basics, including food, more expensive. Iran let through some vessels that paid tolls, something never done before in the strait, which has long been considered an international waterway. The U.S. later provided military support to get other tankers out, but traffic was nowhere near levels before the war.

The deal also says the U.S. will lift a blockade imposed on Iranian ports and that the strait will return to its prewar traffic levels in 30 days, while acknowledging Iranian mines may need to be destroyed.

Michelle L. Price, Matthew Lee, Jon Gambrell, Zeke Miller And Samy Magdy, The Associated Press