President Donald Trump used the sidelines of the Group of Seven summit in Évian-les-Bains, France, to unveil a preliminary memorandum of understanding with Iran that he claimed would reopen the Strait of Hormuz and permanently deny Tehran a nuclear weapon, while simultaneously threatening to “drop bombs” if the Iranian leadership fails to comply. Speaking after a bilateral meeting with Egyptian President Abdel Fattah el-Sisi, Trump described the accord as “great and strong” but stressed it was not a final agreement. The announcement, made on Wednesday, comes against the backdrop of a devastating US-Israeli military campaign against Iran that began on 28 February, which effectively closed the strategic waterway and disrupted global energy markets.

Under the terms outlined by Trump, the memorandum extends a fragile ceasefire first declared in April by a further 60 days and commits Iran to verifiable non-nuclear status. The US president insisted that Washington would not invest “even 10 cents” in Iran, dismissing reports of a $300 billion fund as false, though he acknowledged that other nations remain free to invest. He claimed that American strikes had destroyed Iran’s navy, army and air defences, leaving the country in a position of weakness. The document is expected to be signed within a day or two, but Trump made clear that if the six-month pathway to a comprehensive settlement does not yield results, or if Iran does not “improve its behaviour,” military operations will resume.

Viewed from Washington, the president’s remarks were framed as a victory lap, with Trump asserting that the deal achieved all American objectives and more, citing a record drop in oil prices and a surge in equity markets as immediate vindication. In Tehran, however, state-aligned media portrayed the announcement as an attempt to salvage face after a military defeat, noting that the Strait of Hormuz was open before the US-Israeli aggression and accusing Trump of narcissism. Arab outlets from Beirut to Dubai reported a mood of cautious optimism that the war that has killed thousands might be nearing an end, but also highlighted the conditional nature of the truce and the lingering threat of bombardment. Analysts in London note that the memorandum’s non-final status and the explicit ultimatum leave the situation highly volatile.

The partial resumption of shipping through Hormuz, which Trump said would be fully restored within two days, offers immediate relief to energy markets, yet the underlying tensions remain unresolved. The memorandum’s ambiguity—Trump claimed “nobody knows” its precise details—and the absence of any financial commitment from the US suggest a coercive rather than cooperative framework. As global investors welcomed the short-term stabilisation, diplomatic observers cautioned that the path from a preliminary understanding to a durable accord is fraught with risk, and that the return to bombing remains a live option should either side conclude the other is not honouring its pledges.