The United States and Iran signed a 14-point memorandum of understanding on Wednesday, June 18, 2026, to end the regional conflict known as Operation Epic Fury [1].
This agreement is critical because it seeks to reopen the Strait of Hormuz for commercial shipping and provides a diplomatic path to a permanent truce after a period of intense military escalation.
President Donald Trump said the deal to end the war with Iran was already signed and that details would be released soon [1]. The memorandum establishes a 60-day window [2] for the two nations to negotiate a final truce. Under the terms of the agreement, the U.S. has pledged $300 billion [1] for a reconstruction plan for Iran.
Reports regarding the exact location of the signing vary. Some accounts place the event at the Palace of Versailles, while others state it occurred during the G7 summit in the French Alps [3, 4]. While the deal took immediate effect on Wednesday, some reports indicated a formal ceremony was expected to follow on Friday [1].
International reactions to the deal have been mixed. Iran's Supreme Leader said Trump made the deal out of desperation [1]. Meanwhile, IAEA chief Rafael Grossi said the technical work now starts [5].
While some reports suggest the involvement of leaders from France, Israel, and Pakistan, primary reporting from the BBC, The Guardian, and Al Jazeera identifies only U.S. and Iranian officials as the primary signatories [1, 2, 5]. The immediate priority for both parties remains the cessation of hostilities, and the restoration of maritime trade in the Persian Gulf.
“"Deal to end war with Iran already signed and details will be released pretty soon"”
The agreement represents a high-stakes gamble to stabilize global energy markets by reopening the Strait of Hormuz. By combining a massive financial incentive for reconstruction with a short-term diplomatic window, the U.S. is attempting to pivot from military containment to economic leverage, though the Supreme Leader's comments suggest a narrative of U.S. weakness that may complicate long-term implementation.
