US President Donald Trump and Iranian President Masoud Pezeshkian have signed a memorandum of understanding aimed at ending months of conflict between the United States and Iran.

The agreement was signed on Wednesday during a dinner hosted by Emmanuel Macron at the Palace of Versailles following the G7 Summit. Pakistan Prime Minister Shehbaz Sharif said both leaders endorsed him as a mediator in the peace process.

As part of the initial agreement, Iran will immediately reopen the Strait of Hormuz, while the United States will lift its naval blockade and begin easing sanctions.

The memorandum also outlines a proposed $300 billion reconstruction framework for Iran and a 60-day negotiation period to finalize a broader agreement, including discussions on Iran’s nuclear program.

The document states that Iran will not pursue nuclear weapons and that its enriched uranium will be diluted under the supervision of the International Atomic Energy Agency.

President Trump described the deal as a major step toward preventing global economic disruption, while warning that failure to reach a final agreement could lead to renewed military action.

The agreement has received mixed reactions internationally and within the United States, with supporters calling it a breakthrough for regional stability and critics questioning its long-term effectiveness and financial implications.