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US and Iran Sign Agreement to Reopen Hormuz Strait and Lift Sanctions
The US and Iran have signed an agreement to reopen the Strait of Hormuz, implement a $300 billion Iranian reconstruction plan, and lift US sanctions. However, Iran's nuclear programme remains a contested issue subject to a 60-day negotiation period, with both sides expressing caution about the deal's durability.
Quick Facts
Who
Donald Trump
What
Signed bilateral agreement
When
June 18, 2026
Where
France
- Signed bilateral agreement
- Reopen Strait of Hormuz
- Lift US sanctions on Iran
- $300 billion reconstruction plan for Iran
- 60-day negotiation period on nuclear programme
The United States and Iran have signed a bilateral agreement aimed at easing tensions between the two nations. The accord includes provisions to reopen the Strait of Hormuz, establish a $300 billion Iranian reconstruction plan funded by the US, and lift all American sanctions against Iran. However, the critical issue of Iran's nuclear programme remains unresolved and will be subject to a separate 60-day negotiation period.
US President Donald Trump signed the agreement on behalf of the United States at the G7 summit in France on June 18, 2026. Trump stated that the deal would help avoid "economic catastrophe," but issued a stark warning that the US would "heavily bomb Iran" if a final agreement on the nuclear issue is not reached by the deadline.
Iranian President Masoud Pezeshkian signed the agreement on Wednesday, confirming Tehran's endorsement of the preliminary accord. However, significant skepticism remains on the Iranian side. Mohammad Baqer Ghalibaf, speaker of Iran's parliament and a chief negotiator, expressed deep mistrust of the US, stating that Iran still does not trust America and warned that "the finger is on the trigger." Ghalibaf added that if the adversary does not understand the language of logic, Iran will resort to "the language of force."
The agreement represents a diplomatic breakthrough after years of deteriorating US-Iran relations, though the unresolved nuclear question leaves the long-term stability of the accord uncertain. Both sides have indicated they are willing to continue negotiations, but mutual distrust and preconditions suggest fragile foundations for lasting peace.
Why This Matters
This agreement signals a dramatic shift in US-Iran relations after years of escalating hostility, with immediate implications for global energy markets, Middle Eastern stability, and international sanctions frameworks. The $300 billion reconstruction commitment could reshape Iran's economy and regional geopolitics. However, the 60-day nuclear deadline and mutual threats introduce significant execution risk—failure could trigger military conflict. Readers should monitor the negotiation progress and any policy shifts from both administrations, as this deal directly affects oil prices, regional conflicts, and US foreign policy trajectory.
Timeline & Sources
Jun 18, 2026
WireDonald Trump signs US-Iran agreement at G7 summit in France
Jun 18, 2026
WireMasoud Pezeshkian signs agreement on behalf of Iran