U.S. and Iran Formalize Memorandum to End Conflict and Lift Sanctions

The United States and Iran have formally entered a memorandum of understanding aimed at ending active hostilities and stabilizing regional energy markets. The agreement, signaled by President Trump during the G7 summit, establishes an immediate and permanent ceasefire on all fronts. A key component of the deal involves the reopening of the Strait of Hormuz, which will operate toll-free for an initial 60-day period, a move expected to lower war-risk premiums for international shipping and stabilize global energy flows. Under the terms of the memorandum, the U.S. will seek to lift various unilateral and UN-backed sanctions, allowing Iran to resume unrestricted oil sales. In return, Tehran has committed to reducing its enriched uranium stockpile and has reaffirmed its pledge not to pursue nuclear weapons. However, high-level verification and inspection details remain deferred to future negotiations. Vice President JD Vance is reportedly scheduled to represent the administration at a formal signing ceremony in Switzerland in the coming days. Despite the diplomatic progress, the agreement remains fragile due to ongoing volatility in Lebanon. Regional reports indicate that Israeli strikes against Hezbollah targets in southern Lebanon have continued despite warnings from President Trump. Because the memorandum includes proxy-linked escalations as potential breaches of the 60-day non-escalation period, officials express concern that continued friction in Lebanon could undermine the broader framework before it is fully implemented.