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Published Jun 16, 2026Updated Jun 241
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US and Iran Sign Preliminary Ceasefire Agreement with Further Negotiations Planned
The US and Iran have signed a preliminary ceasefire agreement mediated through a one-and-a-half-page memorandum of understanding that extends a previous ceasefire by 60 days and includes significant sanctions relief for Iran. The accord will be formally signed in Geneva on Friday, followed by negotiations on a comprehensive final agreement. Key remaining issues include Lebanon's conflict and details of Iran's nuclear program oversight.
Quick Facts
- Signed preliminary ceasefire agreement (MoU)
- Extended April ceasefire by 60 days
- Reopened Strait of Hormuz
- Included sanctions relief for Iran
- Planned formal signing ceremony in Geneva
US President Donald Trump announced on Monday that the United States and Iran have signed a preliminary ceasefire agreement to end the conflict in the Gulf, marking a significant diplomatic development after months of tensions. Vice President JD Vance will attend a formal signing ceremony in Geneva on Friday. The agreement, described as a one-and-a-half-page memorandum of understanding (MoU), is characterized as a general framework document with substantial sanctions relief provisions for Iran, though complete details have not yet been made public.
The preliminary accord extends a tenuous ceasefire initially announced in April by an additional 60 days and includes provisions to reopen the Strait of Hormuz, a critical global shipping route. According to Trump, the agreement commits Iran to forgo nuclear weapons development and will include robust nuclear inspections, though he emphasized there is no urgency to extract nuclear material from Iran. Iranian officials have indicated that the first round of negotiations on a final, comprehensive agreement will take place in Switzerland following the Friday signing.
The deal offers Iran potential substantial economic benefits, including sanctions relief, unfreezing of foreign assets, and establishment of a $300 billion reconstruction fund financed by neighboring Gulf states that host US military bases. Iranian President Masoud Pezeshkian characterized the memorandum as an important step toward ending the conflict, while Foreign Minister Seyed Abbas Araghchi emphasized that ending the war in Lebanon is an inseparable part of the finalized agreement. The arrangement proposes maintaining the Strait of Hormuz as toll-free for the next 60 days, though Iran has suggested joint control with Oman.
A major outstanding issue is the Israeli-Hezbollah conflict in Lebanon, where hostilities have displaced 1.2 million people. While Iran has insisted the ceasefire requires full cessation of hostilities in Lebanon, Israeli Prime Minister Benjamin Netanyahu stated that Israel will maintain forces in southern Lebanon and retain the right to respond to Hezbollah attacks. This disagreement over Lebanon's situation represents a significant sticking point in finalizing a permanent truce. More detailed provisions of the agreement are expected to be released over the coming days as both sides prepare for the formal signing ceremony.
Why This Matters
This ceasefire marks a potential turning point in US-Iran hostilities, with direct implications for global oil markets, shipping through the Strait of Hormuz, and regional stability. For businesses and investors, the $300 billion reconstruction fund and sanctions relief signal new economic opportunities in Iran, while the agreement's fragility—particularly regarding Lebanon—means geopolitical risk remains elevated. The success or failure of the subsequent negotiations will determine whether this becomes a durable peace or a temporary pause.