Iran memo of understanding states Iran will not have nuclear weapon, Trump says

A memorandum of understanding between the United States and Iran states that Tehran will never have a nuclear weapon, U.S. President Donald Trump said on Tuesday.

Speaking at a Group of Seven summit in France, Trump said that, should an interim peace agreement between the U.S. and Iran prove successful, the agreement would enter a “second stage.” 

Earlier, Trump also appeared to dismiss reports that the deal would create a $300 billion investment fund for Iran, calling it a “ridiculous” rumor, according to CNBC.

The comments come after Trump announced the pact with Iran just before leaving for France. Crucially, the president has suggested that, as part of the framework, the Strait of Hormuz will be fully reopened by Friday, when representatives from Washington and Tehran are set to meet in Switzerland for a formal signing ceremony. Negotiations about Iran’s nuclear ambitions are also reportedly due to begin this week.

Trump also insisted that the strait, which has been effectively shuttered for weeks, is already “partially opened,” saying “ships are starting to go out now.”

Driven by the prospect of renewed oil supplies coming to the global market, Brent crude futures, the global oil benchmark, extended their decline from recent peaks above $110 a barrel. The contract slipped below the $80 level, falling to lows not seen since the start of the joint U.S.-Israeli assault on Iran in late February. Before the conflict, Brent oil was exchanging hands at roughly $70 a barrel.

However, some uncertainty has surrounded Trump’s timeline for the reopening of the strait, according to The Wall Street Journal. Citing senior U.S. officials, the paper said it could take two weeks for normal shipping operations to resume.

Meanwhile, Trump said the text of the deal will also be released on Friday, even as other officials said it could be made public within two days, the WSJ said. Details remain scarce, but reports say that, along with reopening the strait, the memorandum of understanding will extend an ongoing ceasefire by 60 days and lift an American blockade of Iranian ports.

Trump and U.S. Vice President JD Vance electronically signed the preliminary deal on Sunday. However, Vance, who will attend the signing ceremony, told CNBC on Monday that there are still “a lot of very important details to figure out.”

One of those challenges may revolve around Israel’s ongoing offensive in Lebanon, where the U.S. ally has been targeting Iran-backed Hezbollah militants.

According to the WSJ, Israeli Prime Minister Benjamin Netanyahu has been attempting to arrange a meeting with Trump, having expressed his disapproval of a deal that does not completely dismantle Iran’s ballistic-missile output and regional network of militias.

Defense Minister Israel Katz has also said the country’s military forces will not be withdrawing from southern Lebanon. At the same time, Iran’s Foreign Minister Abbas Araghchi stressed on Tuesday that any peace deal must be contingent on an end to Israel’s occupation of the area, Iranian state television reported.

“Without the withdrawal of Israeli forces from the territories they occupied during this war, the war has not fully come to an end,” Araghchi was quoted as saying, adding that further attacks would be considered a violation of the memorandum of understanding.

Yet U.S. officials have said that an Israeli withdrawal is not a required condition to halt hostilities, the WSJ reported.

Trump, for his part, said Netanyahu must be “more responsible with respect to Lebanon,” Reuters reported.