A landmark peace agreement has been established between the United States and Iran. President Donald Trump and Iranian President Masoud Pezeshkian signed a historic accord to end hostilities between the two nations. The agreement was concluded on 14 principles, with the goal of reducing tensions across the world.
Trump signed the agreement documents during a meeting with French President Emmanuel Macron at the Palace of Versailles in Paris, while Iranian President Pezeshkian simultaneously gave his approval digitally. The agreement came into official effect immediately upon the signing by both parties.
This historic accord is being referred to as the “Islamabad Understanding Between the United States of America and the Islamic Republic of Iran.” Under its terms, both countries and their allied nations — including Lebanon — must immediately and permanently cease all military operations in all regions. The two nations have agreed not to engage in war against each other and to respect the sovereignty of Lebanon. Both countries have set a deadline of 60 days from this interim agreement to conclude negotiations on a full and permanent treaty.
A key provision of the agreement is the immediate reopening of the Strait of Hormuz, a critically important corridor for global energy transportation, through which a significant share of the world’s oil supply passes. For the next 60 days, Iran will permit free and unhindered passage of commercial vessels without any fees. The United States, in turn, will begin fully lifting its naval blockade on Iran and all maritime trade restrictions within 30 days.
To support Iran’s economic recovery, the United States announced a substantial aid package. Working alongside its regional partner nations, the U.S. will provide at least $300 billion (approximately ₹25 lakh crore) for Iran’s reconstruction and economic development following the devastation of war. The U.S. has agreed to unfreeze previously seized Iranian assets and bank funds. The U.S. Treasury Department will immediately issue sanctions exemptions on Iranian crude oil and petroleum product exports.
The agreement also brings clarity on Iran’s nuclear program, which has long been a source of global concern. Iran has explicitly stated that it will neither develop nor acquire nuclear weapons. An agreement has been reached to destroy Iran’s current stockpile of enriched uranium under the supervision of the International Atomic Energy Agency (IAEA). Until a final comprehensive agreement is reached, Iran will maintain its nuclear program in its current state without further advancement.