President Donald Trump and Iranian President Masoud Pezeshkian put pen to paper on a memorandum of understanding at the Palace of Versailles on June 17, formally cementing an interim agreement that had already been digitally signed by both leaders. The signing took place during a dinner hosted by French President Emmanuel Macron.
The 14-point MOU extends a 60-day ceasefire between the US, Iran, and their respective allies. It also reopens the strategic Strait of Hormuz, lifts certain US naval blockades and sanctions on Iran, and unfreezes Iranian assets. In exchange, Tehran committed to refraining from developing or acquiring nuclear weapons. Bitcoin briefly surpassed $67,000 in the hours following the news, as crypto markets responded to the sudden drop in geopolitical risk.
What the deal actually says
The agreement is an interim arrangement, not a comprehensive peace deal. The 60-day ceasefire comes with provisions for sanctions relief contingent on Iranian compliance.
One of the most consequential provisions is the establishment of a $300 billion reconstruction fund to be allocated in post-conflict rebuilding efforts.
