Trump Signs Iran Ceasefire Memorandum in Versailles

U.S. President Donald Trump and Iranian President Masoud Pezeshkian signed a memorandum of understanding in Versailles on June 17, initiating a framework to de-escalate tensions and restore maritime traffic in the Strait of Hormuz.

Trump’s Ultimatum on Ceasefire

President Trump warned that the U.S. will resume bombing Iran if Tehran fails to adhere to the agreed-upon rules. While the agreement facilitates the lifting of sanctions, the U.S. leader stressed that he would not hesitate to return to military action if he remains dissatisfied with Iranian conduct.

Shifting Stance on Missile Capabilities

In a reversal of previous rhetoric, Trump suggested that it would be unfair to deny Iran ballistic missiles if other regional nations, such as Saudi Arabia and Qatar, possess them. He distinguished these weapons from nuclear armaments, stating that having them in appropriate proportions is acceptable.

Strait of Hormuz and Restoration Fund

The agreement requires both sides to restore navigation in the Strait of Hormuz to pre-war levels within 30 days. The U.S. will lift its maritime blockade immediately, while Iran must clear technical obstacles and mines. Additionally, a reconstruction fund of at least $300 billion, financed by the U.S. and regional partners, will be established, though the U.S. will not contribute directly.

Framework and Ongoing Negotiations

The document is a preliminary framework rather than a final peace treaty, with no hard deadline for a permanent resolution. Iranian Foreign Ministry spokesperson Esmail Baghaei stated that a 60-day negotiation window is reasonable, though he rejected the removal of enriched uranium from Iranian territory.

Contested Fees for Strait Passage

Baghaei indicated that Iran plans to charge fees for passage through the Strait of Hormuz, a move allegedly finalized with Oman. This remains a significant point of contention, as the waterway accounts for roughly 20 percent of global oil and LNG shipments.