U.S. President Donald Trump has yet to sign off on a 60-day peace pact that U.S. and Iranian negotiators are discussing to end hostilities. The agreement includes reopening the Strait of Hormuz and providing Iran with at least $300 billion for infrastructure reconstruction.
Iranian officials have cited terms that would halt fighting in Lebanon, though both sides continue to violate previous ceasefires. Israel has recently escalated military operations against Iran-backed militant groups in the region.
The memorandum stipulates a declaration of the end of war on all fronts for 60 days, with the Strait of Hormuz set to reopen immediately under U.S. understanding. However, the naval blockade would be gradually reduced as Iranian ship traffic returns to prewar levels within 30 days.
Iran has agreed to allow maritime traffic to return to prewar levels temporarily while negotiations continue. The United States has not set a deadline for lifting the naval blockade but expects Iran to demine the strait quickly.
The deal also includes an “investment fund” for Iran, estimated at $300 billion by some officials as part of a reconstruction program if final agreements are reached. This proposal builds on earlier ideas from Trump’s Middle East envoy, Steve Witkoff, and Jared Kushner, the president’s son-in-law.
Iranian negotiators have demanded reparations for damage estimated at $300 billion to $1 trillion from U.S. military actions. The agreement would also address Iran’s nuclear program, including the disposal of its enriched uranium stockpile.
Trump reiterated that Iran must agree never to build a nuclear weapon and must complete removing all mines from the Strait of Hormuz. However, after meeting with advisors for two hours at the White House today, he has yet to sign off on the pact.