U.S. and Iran Sign Versailles Accord to End War and Reopen Strait of Hormuz

The United States and Iran signed a memorandum of understanding late Wednesday laying out the terms for ending nearly four months of war and reopening the Strait of Hormuz, the narrow waterway through which roughly 20% of the world's oil moved before the conflict shut it down. President Donald Trump could be seen putting his signature to the document at the Palace of Versailles in video published by French President Emmanuel Macron, who hosted the signing. Iranian President Masoud Pezeshkian signed for Tehran.

Pakistani Prime Minister Shehbaz Sharif, who helped broker the agreement, announced the breakthrough alongside Trump. The interim accord starts the clock on a 60-day negotiating window meant to resolve the hardest questions still dividing the two governments — above all the future of Iran's nuclear program — while immediately easing the pressures that had throttled global energy markets since the spring.

Under the terms made public, the Strait of Hormuz will reopen, with Iran agreeing to allow "safe passage of commercial vessels with no charge for 60 days only," after which Tehran will negotiate with Oman to "define the future administration" of the route. The United States, for its part, pledged to "terminate all types of sanctions," to "make fully available for use the frozen or restricted funds and assets," and to begin dismantling the naval blockade it had thrown around Iran's ports. "The deal is now complete," Trump said, authorizing the removal of the U.S. Navy blockade.

On the nuclear file, the memorandum states that Iran "reaffirms that it shall not procure or develop nuclear weapons," with a mechanism still to be "mutually agreed" governing its stockpile of enriched material — the issue most likely to test the 60-day timeline. The cautious language reflects how much remains unsettled even as the guns fall silent.

Markets reacted within hours. Brent crude fell 2.3% to $77.73 a barrel and Asian equity indexes climbed as more than 500 vessels that had been waiting to transit the strait began moving again. "Putting aside the contents of the MoU, markets are likely to be welcoming the fact that both the US and Iran signed it sooner than initially expected," said Norihiro Yamaguchi of Oxford Economics. Others urged caution. "Due to lack of details and a history of overly optimistic reassurances, we believe the security situation for the shipping industry remains volatile," said Jakob Larsen of the shipping association BIMCO.

The fragile calm faces immediate tests. Israeli strikes in Lebanon have continued even as the ink dried, threatening to complicate an agreement that both Washington and Tehran described as only a first step toward a durable peace.