Ceasefire extended as US–Iran agreement sets stage for fragile peace

The memorandum of understanding agreed between Washington and Tehran this week, though not yet made public, reportedly extends a ceasefire announced in April by a further 60 days to allow the two sides to negotiate a permanent truce, France24 reports.

US President Donald Trump appears to have achieved limited progress on his stated objectives at the outset of the war. Iran’s theocratic government remains in place, its stockpile of highly enriched uranium has not been surrendered, its ballistic missile capabilities have not been dismantled, and it has not ended its support for allied militant groups such as Hezbollah in Lebanon.

Trump said the agreement stipulates that Iran will not obtain a nuclear weapon – a position he described as consistent with Iran’s official stance since the 1970s. US officials, however, allege that further negotiations will focus on the removal or destruction of Iran’s enriched uranium stockpile.

After decades of US and international financial sanctions that severely damaged Iran’s economy, a potential peace deal could deliver significant economic relief for the Islamic Republic. The memorandum reportedly includes a $300 billion reconstruction fund, financed by neighbouring Gulf states, provided Iran complies with other terms.

In the coming 60 days, negotiators are expected to revisit complex issues, particularly the future of Iran’s nuclear program. However, Iran’s support for regional militia groups and its missile arsenal do not appear to be on the agenda—what some observers describe as major US concessions.

A senior US official said that the United States will waive sanctions on Iranian oil under the deal to end the war, raising the prospect of millions of additional barrels of supply entering global markets.

By Vafa Guliyeva