₦airaland Forum

The presidents of the US and Iran have signed an initial peace deal aiming to end the war, allowing it to immediately take effect.

The agreement includes reopening the Strait of Hormuz, a $300bn (£224bn) plan for Iran's "reconstruction", and the US terminating "all types of sanctions" on Iran.

But the issue of Iran's nuclear programme, the main reason stated by the US for the conflict, is still to be negotiated over an extendable 60-day period.

US President Donald Trump, who signed the deal in France during the G7 summit, defended the proposal, saying it would stave off an "economic catastrophe". He warned, though, that the US would "bomb the hell" out of Iran if no final deal emerged.

Iranian President Masoud Pezeshkian also signed the document on Wednesday, Tehran confirmed.

Iran's parliamentary speaker and key negotiator Mohammad Bagher Ghalibaf told state media his distrust of the US remained, and Iran's "finger is on the trigger".

"If the enemy does not understand the language of logic, we will enter again with the language of power," he said.

The US and Israel launched the war on Iran on 28 February, assassinating Supreme Leader Ayatollah Ali Khamenei and top military officials on the first day

But since that time the conflict has spiralled, driving up energy prices and renewing inflationary pressures as Iran imposed a de facto closure of the Strait of Hormuz, a key trade waterway through which around 20% of the world's oil and liquefied natural gas (LNG) usually passes.

Trump told reporters in France at the lakeside resort of Evian-les-Bains, where the G7 summit took place, that the plan would avert "worldwide depression".

"I didn't want to see economic catastrophe," Trump told reporters. "If you kept this going, that could have happened.

"All I know is every time we talked about the possibility of peace, the stock market shot up like a rocket ship," he added.

Every time we said something negative, like, guess what, we're not going to be able to settle, it would go down very big."

Oil prices dipped after the agreement was announced.

In early Asia trading on Thursday, Brent crude was around 1% lower at $78.79 (£59.21) a barrel, but it remained about $8 higher than before the conflict started

Trump signed a hard copy of the initial deal, called a memorandum of understanding, during a state dinner hosted by French President Emmanuel Macron at the Palace of Versailles.

The text says the US and Iran will "commit to negotiating and achieving the final deal in maximum 60 days, extendable with mutual consent".

The agreement says "Iran reaffirms that it shall not procure or develop nuclear weapons", which was Trump's number one condition since the start of the war.

The memo also says that Iran's enriched uranium will be "down-blended" – meaning diluted – on site, under the auspices of the IAEA, the UN's nuclear watchdog.

Originally, the US had demanded that the nuclear material be removed from the country entirely.

As for the Strait of Hormuz, there will be no charges for ships going through the critical waterway for 60 days, according to the agreement.

But the memo leaves open the possibility of future charges. There were none before the conflict.

Iran's parliamentary speaker, Ghalibaf, said in an interview aired on state TV that the Strait of Hormuz "will not return to pre-war conditions".

He suggested the country would charge ships crossing the key passage after the 60-day period in the agreement had lapsed.

While Trump has previously ‌vowed to obliterate Iran's ballistic missiles, he said at the G7 that it would be "OK" for Tehran to have such weapons "if other countries have them".

The first point of the agreement declares the "immediate and permanent termination of military operations on all fronts, including in Lebanon".

But Israel has said it had no plans to withdraw its troops from Lebanon, and it launched attacks on Hezbollah on Wednesday.

Trump has been growing concerned that Israeli military operations against Hezbollah could upend a deal with Iran. He admonished Israeli Prime Minister Benjamin Netanyahu at the G7 on Wednesday.

The US president said that Netanyahu was a "good man", but he could do with "a little softer touch".

"You don't have to knock down a building every time someone walks into it that's from Hezbollah," Trump said.

After dinner at Versailles, Trump began his journey back to Washington, where the peace plan with Iran has unsettled lawmakers on both sides of the aisle - including members of his own political party.

Razzness:
Credit where credit is due abeg. Iran just came up against two nuclear powers and displayed strength to the entire world; Now they are getting a deal that even Khamenei would not have dreamed of when the war started.

GOVERNORR:
Trump has indeed effected change in global history..

Eliminating the tyrant and having Iran now willing to be in business with the Western world.

That's some serious geopolitics

FalseProphet1:
I see Iran and Isreal engaging each other in a brutal war, I see Isreal using their nukes on Iran, I see death everywhere.

This I have seen.

Emeskhalifa:
This is no deal, so long Isreal isn't part of the deal

UzorIyke:
These are two nuclear powers that have no intention of using their nukes, if its the other way round, by now Israel have been wipe out.
So nothing much happened.

madridguy:
Only if Trump will be a man enough to come out publicly to say what he sees in the hand of Iran.

Those guys caused damages worth billions of dollars.

Razzness:
Credit where credit is due abeg. Iran just came up against two nuclear powers and displayed strength to the entire world; Now they are getting a deal that even Khamenei would not have dreamed of when the war started.

Gbadugbakun:
So when is dangote going to reduce fuel back to N700. Because that's the only thing that concerns me.