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US and Iran Sign Middle East Peace Agreement at Versailles
The United States and Iran have signed a preliminary peace agreement at the Palace of Versailles aimed at resolving Middle East hostilities. The accord includes Iran's commitment to dilute enriched uranium, reopens the Strait of Hormuz, permits oil trade, and establishes a 60-day negotiating period for a final treaty, though significant mutual distrust remains.
Quick Facts
Who
Donald Trump
What
Signed peace agreement memorandum
When
2026-06-17
Where
Palace of Versailles
- Signed peace agreement memorandum
- Iran to dilute enriched uranium
- Strait of Hormuz reopened
- Iranian oil trade permitted
- Reconstruction fund planned
The United States and Iran have signed a preliminary peace agreement aimed at ending the Middle East conflict, with the accord signed during a dinner at the Palace of Versailles near Paris. US President Donald Trump personally signed a copy of the agreement memorandum, which Iran also confirmed. The accord represents a significant diplomatic development after years of tensions between the two nations.
Under the agreement's terms, Iran has committed to diluting its enriched uranium stockpile—a measure the White House characterized as a major victory for the United States. The nuclear question had been central to Washington's negotiating position. Additionally, the Strait of Hormuz would be reopened for maritime traffic, and Iran's oil would be permitted to return to international markets. The agreement also envisions a reconstruction fund for Iran valued at approximately $300 billion, to be developed by the United States and its allies.
The accord establishes a 60-day period to finalize a comprehensive peace treaty, though Trump indicated this timeline is not rigid and could extend considerably. During the initial 60 days, vessels transiting the Strait of Hormuz will face no tolls; however, Iran's chief negotiator indicated that taxation of maritime traffic would resume afterward once final negotiations conclude.
Despite the agreement's signature, significant uncertainty remains. Iran's chief negotiator stated that mistrust of the United States persists, describing Iran as "keeping its finger on the trigger" and suggesting that even a final peace agreement would lack reliability. Trump has previously threatened to "bomb the hell" out of Iran should it violate the accord's terms. The parties have indicated that a final comprehensive agreement remains possible but not guaranteed.
Why This Matters
This agreement represents a potential breakthrough in decades-long US-Iran tensions, with direct implications for global oil markets, regional stability, and international maritime commerce. The $300 billion reconstruction fund and uranium dilution commitments signal major shifts in sanctions and nuclear policy. However, mutual distrust and Trump's prior threats mean the accord remains fragile—any violation could trigger renewed military escalation, making the 60-day negotiation window critical for investors, energy traders, and Middle East observers.
Timeline & Sources
Jun 17, 2026
WireTrump and Iran sign peace agreement at Palace of Versailles