The United States and Iran have formally activated a new memorandum of understanding aimed at reducing tensions and reopening the Strait of Hormuz, but significant obstacles remain before a permanent peace and nuclear agreement can be achieved.
President Donald Trump presented the agreement as a major diplomatic success during a lengthy appearance at the G7 summit in France. Both Washington and Tehran later confirmed that the memorandum had been electronically signed on Wednesday and had immediately entered into force.
Despite the breakthrough, details released by US officials indicate that the agreement serves primarily as a framework for future negotiations rather than a final settlement. The deal establishes a 60-day period during which both sides will attempt to negotiate a comprehensive agreement covering Iran’s nuclear programme and broader regional security concerns.
Trump has repeatedly stated that the agreement guarantees Iran will never acquire a nuclear weapon. However, the memorandum itself stops short of delivering such assurances. Instead, Iran has agreed to begin reducing its stockpile of highly enriched uranium through a process known as downblending under the supervision of the International Atomic Energy Agency (IAEA). US officials described the commitment as a significant concession, although many technical details, timelines and verification mechanisms remain unresolved and will be negotiated over the coming weeks.
The challenge facing negotiators is considerable. The original 2015 nuclear agreement reached under former President Barack Obama required roughly 20 months of negotiations. The Trump administration now hopes to secure a more comprehensive arrangement in just two months.
Another sensitive issue concerns reconstruction funding for Iran. Trump has repeatedly emphasized that the United States will not provide direct financial assistance to Tehran, often criticizing the Obama administration’s $1.7 billion payment to Iran in 2016. However, the memorandum includes language stating that the US will work alongside regional partners on a reconstruction plan worth at least $300 billion for Iran.
While senior US officials insist the agreement does not obligate Washington to contribute funds directly, critics argue the wording leaves room for future financial commitments as part of a broader settlement. The issue could become politically challenging for Trump and Vice President JD Vance, particularly among supporters who oppose long-term foreign interventions and overseas spending.
Reaction to the agreement has been mixed, including among Republicans in Congress. Several lawmakers have demanded detailed briefings on the terms of the deal, while some have expressed concerns that Iran received significant concessions without making enough commitments in return.
Among the most vocal critics was outgoing Republican Senator Bill Cassidy of Louisiana, who argued that Iran’s nuclear ambitions had not been sufficiently restricted and warned that Tehran could use future threats involving the Strait of Hormuz as leverage in future negotiations. He described the agreement as a major foreign policy mistake.
The memorandum also leaves several major security concerns largely unresolved. At the start of the conflict, both the United States and Israel identified Iran’s support for regional proxy groups, particularly Hezbollah, as a key issue. Although the agreement extends a cessation of hostilities involving Hezbollah, it provides little clarity on whether Iran will be required to reduce or end its backing of the Lebanese group and other allied organizations across the Middle East.
Similarly, Iran’s missile programme receives only limited attention in the document, despite being one of the principal concerns raised by Trump and Israeli Prime Minister Benjamin Netanyahu when hostilities began.
Questions also remain over whether the current framework can evolve into a lasting peace agreement. Although the memorandum establishes a 60-day deadline for negotiations, it allows for extensions if both sides agree, suggesting neither government is fully confident that a final settlement can be reached within the allotted timeframe.
Speaking at the G7 summit, Trump appeared to acknowledge the uncertainty surrounding the process. While expressing hope that a permanent agreement could be achieved, he warned that failure to reach a final deal could result in renewed military action.
“If it doesn’t get done in 60 days, it’s all right,” Trump said. “We go back to bombing.”
The statement underscored the fragile nature of the current arrangement, with the coming weeks likely to determine whether the memorandum becomes the foundation for lasting peace or merely a temporary pause in a volatile conflict.
