Iran Nuclear Talks Begin After US and Iran Sign Deal to Reopen Strait of Hormuz

TLDR

• Trump signed an interim deal with Iran at Versailles palace, ending the US-Iran war that began in February 2026.
• The Strait of Hormuz — a key route for one-fifth of the world’s oil — will reopen, causing Brent crude to drop below $80 a barrel.
• A 60-day negotiation window on Iran’s nuclear program now begins, with talks set for Switzerland.
• Iran gets sanctions waivers and a $300 billion reconstruction fund, while the US says it will not contribute cash.
• Several Republican senators have criticised the deal, with some calling it the “worst foreign policy blunder in decades.”

Trump and Iran agree to end war and reopen the Strait of Hormuz, sending oil prices lower and starting a 60-day nuclear negotiation window.

The US and Iran have signed a deal to end their war and reopen the Strait of Hormuz. The agreement was signed by President Donald Trump and Iranian President Masoud Pezeshkian at Versailles palace in France on Wednesday, during a Group of Seven summit.

The signing was earlier than expected. A formal ceremony in Switzerland had been planned for June 19, but Trump moved ahead at a dinner with French President Emmanuel Macron.

The deal was first digitally signed on Sunday by Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf. Trump and Pezeshkian signed as principals on Wednesday.

What the Deal Covers

The memorandum of understanding calls for a permanent halt to hostilities. It also reopens the Strait of Hormuz, which has been effectively closed since the conflict began in February. The strait carries around one-fifth of the world’s oil and liquefied natural gas.

The deal holds the strait open without tolls for two months. After that, fees could still be imposed.

The US will also waive some sanctions on Iran. A $300 billion reconstruction fund for Iran is outlined in the deal, though Trump said no US government money will go into it.

Oil markets responded quickly. Brent crude fell below $80 a barrel this week, though it pared some of that drop on Wednesday.

Nuclear Talks and Criticism

A 60-day window for nuclear negotiations is now underway. Talks are scheduled in Switzerland from Friday to Sunday. Iran has maintained its nuclear ambitions are peaceful. The International Atomic Energy Agency has said Iran is the only country to have enriched 60% of its uranium without a weapons program.

The deal does not cover Iran’s ballistic missile program. Trump said missiles will be discussed in later talks.

Former Vice President Mike Pence said there is “no mention of verifiably dismantling the nuclear weapons program” in the memorandum.

Senator Ted Cruz said the deal amounts to giving “billions of dollars to theocratic lunatics.” Senator Bill Cassidy called it the “worst foreign policy blunder in decades,” pointing out that 13 US service members died and the Strait of Hormuz had been open before the war began.

Senator Lindsey Graham said the memorandum is more of a framework than a finished deal.

Trump defended the agreement, saying that military escalation “could have caused an international depression.” He also said US forces would strike Iran again if leaders did not follow through.

Trump indicated he may release billions in frozen Iranian assets, saying the dollar’s credibility depends on it. Iran’s frozen assets have been a long-standing point of dispute.

Pakistan’s President Shehbaz Sharif, who served as a mediator, confirmed the deal takes “immediate effect.”

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