US and Iran Reach Interim Deal to End War, With Nuclear Issue Still Unresolved

The United States and Iran reached a formal memorandum of understanding overnight Monday aimed at ending the war that began in late February. The full text has not been released, but the main terms were outlined by mediators in Pakistan and in official statements from Washington and Tehran. A final agreement is expected to be signed Friday in Switzerland.

The deal is described by political analysts as more than a ceasefire but short of a full peace treaty. It immediately rattled global markets, pushing crude oil to its lowest level since the fighting began. Pakistan’s prime minister, Shehbaz Sharif, who served as the main broker, said the two sides had declared an immediate and permanent halt to military operations on all fronts, including Lebanon. Iranian Deputy Foreign Minister Kazem Gharibabadi said the same.

Lebanon’s inclusion was a key Iranian demand, effectively extending the ceasefire to the fighting between Israel and Hezbollah in southern Lebanon. Israel was not part of the negotiations and gave no official response. Security sources warned that if Israel keeps holding positions in southern Lebanon, exchanges of fire could jeopardize the entire arrangement.

Iranian media also claimed major economic gains. The Mehr news agency said half of Iran’s frozen foreign assets, worth $24 billion, will be released before detailed talks begin, and that the United States will need to present a $300 billion reconstruction plan for Iran. Tehran also says sanctions on oil and petrochemical exports will be temporarily suspended, though Washington has not confirmed those terms, and European governments said they will lift sanctions only if Iran takes verifiable steps to stop military development.

Another central issue is the Strait of Hormuz. Trump first said it would be reopened immediately and “without tolls,” then clarified that the first stage would focus on clearing naval mines. Iran says it will still control the practical movement arrangements there. The nuclear issue was left out of the current accord and set for 60 days of technical talks after the Switzerland signing. Trump said his goal remains preventing Iran from obtaining nuclear weapons and warned that the United States would resume military strikes if the talks fail. Senator Lindsey Graham said any final nuclear deal would go to Congress for review and a vote.