Trump signs Iran peace plan, claiming deal averts ‘worldwide depression’

What Happened

The Trump administration released the text of a 14‑point memorandum of understanding with Iran, outlining a 60‑day ceasefire and significant economic concessions. President Trump claimed the deal averted a “worldwide depression” by securing the reopening of the Strait of Hormuz and stated that Iran had basic rights to enrich uranium for civilian use and would not be pressured on its ballistic missile programme. Under the agreement, Iran commits to down‑blend its 440kg stockpile of near‑weapons‑grade highly enriched uranium under IAEA supervision, not procure or develop nuclear weapons, and restrain its foreign allies, including Hezbollah in Lebanon. In return, the US lifts its naval blockade on Iranian ports, issues waivers for Iranian crude oil shipments, and opens the path to unfreezing billions of dollars in assets and lifting international sanctions. A $300bn Gulf‑state‑funded reconstruction fund is planned, though Trump insisted the US would not contribute. The ceasefire also includes a Lebanon clause, committing to Lebanon’s territorial integrity; however, administration officials did not confirm this would require Israel to withdraw from occupied buffer zones. Hezbollah chief Naim Qassem hailed the deal as a “great victory”, while Israel and Republican hardliners are expected to react angrily. The signing is expected shortly, potentially by Presidents Trump and Pezeshkian, after an earlier plan for Vice President Vance to sign in Geneva.

Key Actors

Why It Matters

The deal temporarily freezes Iran’s nuclear breakout capacity and de‑escalates a crisis that threatened global energy supplies through the Strait of Hormuz. By avoiding confrontation, it stabilizes oil markets and offers Iran a path out of economic isolation, but it bypasses Iran’s ballistic missile programme and leaves Hezbollah’s capabilities intact, risking a backlash from Israel. The shift from “maximum pressure” to a negotiated settlement under the Trump administration could reconfigure Middle Eastern alliances, with Gulf states funding reconstruction as leverage over Iranian behaviour.

Watch For

Formal signing within days, possibly by Trump and Pezeshkian or by Vice President Vance in Geneva; IAEA verification of down‑blending of Iran’s 440kg highly enriched uranium stockpile; Israeli and US congressional Republican condemnations and potential legislative moves; implementation of the Lebanon ceasefire, especially Israeli withdrawal from occupied areas; Gulf state commitments to the $300bn reconstruction fund; and follow‑on talks on ballistic missiles as urged by G7 leaders.