The United States and Iran have signed a memorandum of understanding to resolve a nearly four-month war, senior US officials said today, adding that a signing ceremony will be held on Friday and that maritime traffic in the Strait of Hormuz will gradually increase.
The memorandum of understanding was signed by President Donald Trump, Vice President J.D. Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf, a US official said.
Speaking at a briefing with reporters, the US official added that a signing ceremony will also be held on Friday.
"You will see a significant increase in traffic in the Strait of Hormuz, in fact it is already starting, and it will gradually increase over time," said the US official, speaking on condition of anonymity.
"We probably won't be back to normal in two weeks, but we will see a significant increase in traffic through the strait," the official said.
The United States and Iran said they had agreed on terms to end the war and reopen the strait, bringing relief to markets, although the deal could hinge on an end to hostilities in Lebanon and delays talks on Tehran's nuclear program.
Although still a framework agreement, the agreement marked the biggest step towards resolving the conflict that has killed thousands of people and disrupted energy markets since it began with joint US-Israeli attacks on Iran in February.
"The deal with the Islamic Republic of Iran is now complete," US President Donald Trump wrote on his Truth Social platform on Sunday.
Leaders around the world welcomed the announcement on Monday, as details of the terms began to emerge.
Although the text has not yet been published, its apparent call for a broader cessation of hostilities could be problematic for Israel, which did not participate in the negotiations and is waging a war in Lebanon against Hezbollah, a group linked to Iran.
"Lebanon is an integral part of the agreement to end the war," said Iranian Foreign Ministry spokesman Esmail Bagai, adding that the text calls for an end to the war on all fronts, as well as respect for Lebanon's territorial integrity.
Leaders of the Group of Seven wealthy nations, including Trump, are due to arrive at the French lakeside resort today.
Lebanon as a controversial issue
Although the US and Iran largely suspended hostilities in early April to engage in negotiations, fighting has not stopped in Lebanon, where Hezbollah opened fire on Israel on March 2 in support of Tehran, and Israel responded with an air campaign and ground invasion that displaced about 1,2 million people.
Iranian Foreign Minister Abbas Araghchi said there must be a complete cessation of Israeli attacks on Lebanon and wrote on Telegram that the US bears responsibility for implementing the framework agreement.
Hezbollah welcomed the deal and said Lebanon's inclusion reflected Iran's commitment to ensuring an end to the war and preserving Lebanon's rights.
After the deal was announced, the pace of Israeli attacks in Lebanon dropped dramatically, Lebanese and foreign security sources told Reuters.
Earlier, a Hezbollah official told the BBC that the group had not carried out any operations since the deal was announced and that its stance on the ceasefire was linked to whether Israel adhered to it.
Before releasing the memorandum, Trump said that there should be no more Israeli attacks on Lebanon or Hezbollah attacks on Israel.
Israeli Prime Minister Benjamin Netanyahu has yet to comment publicly on the US-Iran deal. However, Defense Minister Israel Katz said Israel would remain "indefinitely" in areas it occupies in southern Lebanon to eliminate what it sees as militant threats.
Privately, Israeli officials have been negative about the deal. One senior Israeli official told Reuters that the agreement was “terrible for Israel,” and that this assessment was shared by everyone in the government, from Netanyahu on down.
Opening of Hormuz
Trump said the Strait of Hormuz, a vital shipping route for global oil and gas supplies that Iran had kept virtually closed for months, would be opened on Friday, and ordered an end to the US blockade of Iranian ports.
“Ships of the world, start your engines. Let the oil flow!” he wrote on Sunday. On Monday, he said traffic was already being restored: “Ships are starting to move, many loaded with oil, from the Strait of Hormuz.”
Oil prices fell, although shippers remained cautious, and clearing the waterway of mines could take weeks. Brent North Sea crude futures fell about 5 percent on Monday, while stock markets rose.
France and Britain are ready to lead a mission in the strait, with support from the Netherlands and Italy, to help reopen the sea route once the deal becomes a reality, French President Emmanuel Macron said on Monday.
US Vice President J.D. Vance said he hopes the text of the agreement will be released this week, while further negotiations on the details of the deal are expected to continue.
“We expect the Strait to be open without tolls in the long term,” he told CNBC. “That’s the kind of issue we’ll address in these technical negotiations.”
Iran's Fars news agency, citing an informed source, reported that the draft agreement recognizes Iranian-Omani jurisdiction over navigation services in the strait. Tehran has agreed to allow free passage for only 60 days, after which it plans to charge for passage.
The war has become a political burden for Trump at home, as Americans are deeply dissatisfied with rising fuel prices ahead of November's congressional elections. But Trump has also faced pressure from members of his own party who insist that Iran's nuclear program must be completely dismantled.
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