Trump Signs Peace Pact with Iran After Costly War

President Donald Trump ended a joint U.S.-Israel military offensive against Iran that began in February 2026. The conflict, which included Operation Epic Fury and Operation Roaring Lion, aimed to topple the Iranian regime and destroy its missile capabilities. However, the campaign met with fierce resistance, leading to a blockade of the Strait of Hormuz that disrupted 20% of global oil trade and cost U.S. taxpayers over $100 billion.

Following a ceasefire on April 8, 2026, the U.S. and Iran signed a 14-point Memorandum of Understanding and an interim pact. This agreement establishes a $300 billion reconstruction fund for Iran—which excludes U.S. companies—and allows Tehran to retain some ballistic missiles. To manage the Strait of Hormuz, Iran and Oman have formed a joint working group.

The pivot from regime change to diplomacy has marginalized Israeli Prime Minister Benjamin Netanyahu. While Netanyahu continues to advocate for military pressure on Iran and Hezbollah in Lebanon, Trump has publicly rebuked Israel's conduct in Lebanon and urged a halt to retaliations. This divergence has isolated Netanyahu internationally and stalled his efforts to expand the Abraham Accords. Despite this friction, the U.S. Department of State maintains an "iron-clad" commitment to Israeli security, though the White House has signaled it may override Israeli priorities to maintain the settlement.