US President Donald Trump and Iranian President Masoud Pezeshkian have signed an initial peace agreement aimed at ending the war between the US and Iran.

The agreement took effect immediately, according to the report.

Trump signed the memorandum of understanding in France during the G7 summit. Tehran later confirmed that Pezeshkian had also signed the document.

The deal includes the reopening of the Strait of Hormuz, a major shipping route for global oil and liquefied natural gas. The agreement also includes a proposed $300bn reconstruction plan for Iran and the possible termination of US sanctions.

But the biggest issue is still unresolved.

Nuclear Talks Get 60-Day Window

The agreement gives the US and Iran up to 60 days to negotiate a final deal. That period can be extended if both sides agree.

The report says Iran has reaffirmed that it will not obtain or develop nuclear weapons.

Iran’s enriched uranium is also expected to be down-blended on site under the supervision of the International Atomic Energy Agency. The US had previously wanted the nuclear material removed from Iran completely.

Trump defended the deal, saying it could prevent a major global economic crisis.

He told reporters that he did not want to see an “economic catastrophe” and warned that the US would attack Iran again if a final agreement was not reached.

Hormuz Reopens, but Tensions Remain

For now, ships will be allowed to move through the Strait of Hormuz without charges for 60 days.

However, Iran’s parliamentary speaker and key negotiator Mohammad Bagher Ghalibaf said the waterway “will not return to pre-war conditions”.

He suggested Iran may charge ships after the 60-day period ends.

Ghalibaf also made it clear that Iran remains deeply suspicious of the US. He told state media that Iran’s “finger is on the trigger”.

Deal Faces Backlash in Washington

The deal has already triggered criticism in the US.

Republican Senator Bill Cassidy called it “the worst foreign policy blunder in decades”.

Republican Senator Ted Cruz questioned the $300bn reconstruction plan. Trump denied that the US would be paying Iran directly and said reports claiming otherwise were false.

Democrats were also critical. Senator Jeanne Shaheen said the agreement did not address Iran’s support for regional groups or its missile programme.

For now, the agreement pauses the war. But the next 60 days will decide whether this becomes a real peace deal or another temporary break in a much bigger conflict.