Trump Signs Fragile Peace Deal With Iran Amid Renewed Strikes

President Donald Trump and Iranian President Masoud Pezeshkian signed the Islamabad Memorandum of Understanding on June 17, 2026, to end a 15-week military campaign. The interim agreement established a 60-day negotiation window to reach a final settlement, providing Iran with a 60-day sanctions waiver for oil exports, the release of billions in frozen assets, and a proposed $300 billion reconstruction fund backed by Gulf states. In exchange, Iran pledged to reopen the Strait of Hormuz, dilute its enriched uranium under IAEA oversight, and cease nuclear weapons production.

The agreement faced immediate instability. By late June, military hostilities reignited after Iranian drones struck the container ship Ever Lovely in the Strait of Hormuz. The U.S. Central Command responded with aircraft strikes against Iranian missile storage and radar sites, while the Islamic Revolutionary Guard Corps retaliated with missile and drone attacks on U.S. bases in Kuwait and Bahrain. Trump characterized the drone attack as a "foolish violation" and threatened to militarily "complete the job" if Iran did not comply.

Diplomatic friction persists over the deal's implementation. While Vice President JD Vance promoted the MOU as a successful foundation, the Iranian government rejected U.S. claims that unfrozen assets would be restricted to purchasing American agricultural goods. To resolve the maritime dispute, officials scheduled a high-level summit in Doha, Qatar, to replace technical talks in Switzerland. The conflict has cost the U.S. billions of dollars and resulted in thousands of Iranian deaths, including the reported death of Supreme Leader Ali Khamenei.