US and Iran sign ceasefire agreement, details remain unclear

US President Donald Trump said on Monday that the United States and Iran had signed a preliminary agreement to end the war in the Gulf, although details have not yet been made public and both sides said a permanent truce still needs to be negotiated. 

"The deal's all signed," Trump said after arriving in France for the G7 summit. He added that Vice President JD Vance would attend a formal signing ceremony in Geneva on Friday.

Vance told CNN that the signed memorandum of understanding (MoU) was only about one and a half pages long and "a very general document." US officials said further details would be released over the next two days. Vance added the MoU includes "a very significant sanctions ​relief package" for Iran.

Iran's President Masoud Pezeshkian wrote on social media that the US-Iran memorandum was an "important step" toward stopping the fighting but noted a final agreement for a ​lasting truce "has yet to take shape."

Iranian Foreign Minister Seyed Abbas Araghchi said on Monday the first round of negotiations on a final agreement between Iran and the US would be held after the signing of the MoU in Switzerland on Friday.

Araghchi on Monday also briefed Lebanese officials on the details of the MoU between Iran and the US, especially those pertaining to Lebanon.

What's in the deal?

The agreement would extend a tenuous ceasefire announced in April by another 60 ‌days and reopen the Strait of Hormuz. During the next phase of negotiations, the parties are expected to address more contentious issues, including the future of Iran's nuclear program.

At present, many details of the agreement remain unclear, and it is uncertain whether its provisions differ from those outlined in the April ceasefire.

US and Iranian officials say it could eventually deliver substantial economic benefits to Iran by lifting sanctions, unfreezing foreign assets and setting up a $300 billion reconstruction fund, paid for by neighboring Gulf states, which host US military bases.

The deal would include a commitment from Iran not to obtain nuclear weapons, Trump told The Wall Street Journal.

There would be strong nuclear inspections on the Iranians, Trump said, without specifying how they would work. He also expressed no urgency to extract nuclear material from Iran, saying "there's no rush."

Iranian Foreign Ministry spokesperson Esmaeil Baghaei stressed on Monday that ending the war in Lebanon is an "inseparable" part of the finalized MoU.

While the latest agreement lifts Iran's chokehold on the Strait of Hormuz, it only restores the prewar status quo, and shippers say traffic will only restart once safety is assured.

Iran has proposed retaining joint control of the strait with Oman. The US said the waterway would remain open toll-free for 60 days and expects that provision to be included in any final agreement.

Sticking point

Besides, the fighting between US ally Israel and the Iran-allied Hezbollah militia in Lebanon, which has uprooted 1.2 million people, remains a sticking point.

Iran has said the deal requires a full cessation of hostilities in Lebanon, but Israeli Prime Minister Benjamin Netanyahu said that ​Israel would keep its forces in southern Lebanon and retain the right to respond to Hezbollah attacks.

"Iran wanted us to withdraw from it, but ​I stood firm," he said at a news conference, where he acknowledged that he and Trump have had their differences over the conflict. Israel has not directly participated in the peace talks with Iran.

A US official said Israeli withdrawal from Lebanon, which it invaded in March after Hezbollah joined the war, was not a condition of the deal. Disagreement over whether Lebanon was included was also a point of contention in the April ceasefire agreement.

Privately, Israeli officials' views of the deal have been negative. One senior official told Reuters on condition of anonymity that the ​agreement was "terrible for Israel," and that this assessment was shared throughout the government from Netanyahu down.

Li Zixin, assistant researcher at the China Institute of International Studies, told CMG that if Israel continues to provoke tensions, Iran may at any time use the argument that the US is unable to restrain its ally as a reason to terminate negotiations, or even resume hostilities.

(With input from agencies)