US and Iran Sign Preliminary Agreement to End 110-Day War and Reopen Strait of Hormuz

The United States and Iran have signed a sweeping 14-point memorandum of understanding (MOU) to halt a devastating 110-day war, initiating a fragile 60-day window to negotiate a final peace treaty. The preliminary agreement, mediated by a coalition led by Pakistan, mandates an immediate and permanent end to military operations on all fronts, including the heavily contested border between Israel and Lebanon. For the global economy, the centerpiece of the deal is the reopening of the Strait of Hormuz, a critical maritime chokepoint that has been paralyzed by naval mines and a U.S. blockade since late February.[1][2][3][4]

Under the terms dictated by senior U.S. officials, the agreement grants Tehran massive and immediate economic concessions. The moment the document was signed by U.S. President Donald Trump and Iranian President Masoud Pezeshkian, the U.S. Treasury Department was mandated to issue sweeping waivers allowing Iran to resume exporting crude oil and petroleum products. Furthermore, the U.S. and its regional partners have committed to developing a $300 billion reconstruction and economic development plan for Iran, the mechanisms of which will be finalized during the 60-day negotiation period.[1][2]

In exchange for sanctions relief, Iran has agreed to maintain the "status quo" of its nuclear program and down-blend its stockpile of highly enriched uranium on Iranian soil under the supervision of the International Atomic Energy Agency (IAEA). The U.S. has also agreed to begin lifting its naval blockade immediately, with a commitment to fully remove it within 30 days. If a final, comprehensive deal is reached within the 60-day window, the U.S. has pledged to withdraw its forces from the immediate proximity of Iran and refrain from deploying additional troops to the region.[1][2][3]

Despite the diplomatic breakthrough, the physical reality in the Strait of Hormuz remains treacherous. The shipping industry has warned that the waterway will not return to normal operations for weeks, or possibly months, due to the presence of roughly 80 naval mines laid by Iranian forces in the central traffic separation scheme. "The main route through the middle of the Strait of Hormuz, that's closed, that's dangerous," noted a director at the tanker owners association Intertanko, emphasizing that clearing the explosives will require a massive, painstaking operation involving specialized minesweepers and underwater drones.[4][8]

The logistical backlog is staggering. More than 500 commercial vessels are currently stranded in the Gulf of Oman and the Persian Gulf, waiting for assurances that the corridor is genuinely safe. Shipping executives have stressed that a political signature does not immediately translate to maritime security, and many insurance companies remain hesitant to underwrite voyages until the U.S. military and its allies can guarantee that the minefield has been entirely neutralized. During the conflict, some vessels resorted to paying what the industry dubbed "Tehran's tollbooth" to sneak through Iranian coastal waters.[4][8]

The agreement has exposed a deep and increasingly public rift between the U.S. administration and the Israeli government. Israel was not a party to the negotiations, and Israeli officials were reportedly caught off guard by the speed and scope of the concessions. Senior Israeli figures have privately described the preliminary agreement as "terrible," arguing that it prematurely relieves economic pressure on Tehran while leaving Iran's nuclear infrastructure and its network of regional proxy militias largely intact.[1][5]

The inclusion of Lebanon in the ceasefire mandate has been a particular flashpoint. The MOU explicitly calls for the termination of military operations "on all fronts, including in Lebanon," effectively demanding that Israel halt its campaign against Hezbollah. Israeli Prime Minister Benjamin Netanyahu has vowed that Israeli forces will remain in southern Lebanon as long as security requires, and Israeli officials have signaled they do not feel bound by the U.S.-Iran pact.[1][2][6]

The friction reached a boiling point this week, with President Trump reportedly expressing intense frustration with Netanyahu's resistance to the deal. In a highly unusual public rebuke, U.S. Vice President JD Vance warned the Israeli cabinet against criticizing the agreement, declaring that Trump is "the only head of state in the entire world who is sympathetic to the nation of Israel at this moment in time." Vance insisted that the deal requires Iran to rein in Hezbollah, though he acknowledged that minor "flare-ups" might still occur.[5][6]

Regional allies in the Gulf are viewing the agreement with a mixture of profound relief and quiet anxiety. While states like Saudi Arabia and Oman are desperate for an end to the violence and the resumption of normal maritime trade, they are deeply concerned by the MOU's provision that U.S. forces will withdraw from the area following a final deal. Gulf leaders fear they will be left to manage a newly enriched and emboldened Iran without the traditional American security umbrella.[3]

The next 60 days will test the durability of the framework. U.S. officials have bluntly acknowledged the fragility of the MOU, noting that either side can walk away at any time if negotiations over the nuclear file collapse. Furthermore, a dispute is already brewing over the long-term status of the Strait of Hormuz; while the U.S. insists on a permanent toll-free reopening, Iranian state media and officials have signaled an intent to impose transit "service fees" once the initial 60-day window expires. If the talks fail, the U.S. has warned it is prepared to return to a state of war and drastically tighten economic pressure.[1][2][3][7]