US and Iran sign initial agreement to end war but tougher talks lie ahead

The memorandum of understanding aims to reopen the Strait of Hormuz and lifts sanctions on Iran, among other provisions.

Agreement signed: President Donald Trump signed a copy of the US-Iran agreement at the Palace of Versailles in France, concluding his G7 trip. The US then sent a photo of the signed agreement to the Iranians, a US official said. The document was then signed by Iranian President Masoud Pezeshkian.

• What comes next: The agreement commits the US and Iran to achieving a final deal within 60 days. It also says the US will issue waivers so Iran will be able to export oil and spells out provisions for reopening the Strait of Hormuz. It also commits the US and regional partners to developing a $300 billion reconstruction fund for Iran.

• Spotlight on Lebanon: The agreement ends the war on all fronts, including in Lebanon, where Israel has continued to carry out strikes. Trump said the US sent Israel a copy of the agreement, and again criticized Israel’s military actions against Hezbollah, saying: “they could do better.”

“A Glorious Defeat!” Iran’s newspapers declare victory after agreement signed

A man reads a copy of the Iranian daily newspaper Hamshahri bearing an image of the US president and a headline that reads “Gone with the wind” at a kiosk in Tehran on Thursday.AFP/Getty Images

Iranian newspaper headlines on Thursday adopted a victorious tone following the signing of the US-Iran agreement to end the war, with some saying that US President Donald Trump’s military plans had failed.

Javan, a prominent Iranian daily newspaper close to the Iran’s Revolutionary Guard Corps (IRGC), described the United States as having suffered “a glorious defeat,” writing that while Israel and the US entered the conflict with ambitious goals, Iran emerged stronger than its opponents expected.

On the front page of the state-affiliated newspaper Hamshahri, Trump is seen biting on a crumbled piece of paper. The headline reads, “Gone with the Wind,” a common Persian idiom referring to something being wasted.

Kahyan, an influential and conservative newspaper, went with the headline: “The Strait of Hormuz is our deterrent weapon; our lever of power is not negotiable.”

Another, Sazandegi, focused on potential economic gains after the US-Iran agreement, writing the number “300” in large letters, in reference to the potential $300 billion reconstruction fund outlined in the agreement.

US-Iran deal calls for a $300b fund for Tehran. But no Gulf states have committed to it yet

The Emir of Qatar, Sheikh Tamim bin Hamad Al Thani attends the G7 summit, in Evian-les-Bains, France, on Tuesday.
Evelyn Hockstein/Reuters

The US-Iran ceasefire agreement obliges Washington and its allies to ensure financing of a $300 billion fund for Tehran. US President Donald Trump said this week that the Islamic Republic will need the money after “we blew them up.”

US Vice President JD Vance said last week that the Iranians “could have access” to the fund, which he said would be funded by Gulf nations. But it’s unclear which Gulf states would participate, as none have publicly committed to it.

Speaking to Al Arabiya English on Wednesday, Saudi Foreign Minister Prince Faisal bin Farhan said that he has “no details” about the fund, but said that due to Iran’s attacks on Gulf states during the war, there has been “a significant loss of trust.”

“We were just in the beginning process of building our relationship with Iran as a result of the Beijing understanding… that was only really starting to gather momentum and potentially opening up on economic cooperation and things like that.”

“I think we have since then regressed,” he said, adding that trust has to be rebuilt before any kind of economic cooperation is discussed. “We are quite early days now.”

In a meeting with Trump on the sidelines of the G7 summit this week, Qatar’s Emir Sheikh Tamim bin Hamad Al Thani said there are likely to be “huge opportunities” in Iran after the agreement, but didn’t specifically comment on the fund.

“I am sure there are going to be huge opportunities,” he said, adding that after negotiations Iran is going to be open to “all kinds of investments.”