politics
U.S. and Iran Sign Deal to End War, Lift Blockade, and Create $300 Billion Reconstruction Fund
The agreement commits the United States to ending a naval blockade, releasing frozen assets and establishing a reconstruction fund. Iran pledges to restore shipping traffic through the Strait of Hormuz and never build nuclear weapons.
Jun 18, 5:02 PM·2m read3 sources
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The United States and Iran reached a memorandum of understanding to end the war between them. The document commits the United States to lifting its naval blockade of Iranian ports upon signing and to establishing a fund of at least $300 billion for Iranian reconstruction and economic development.
President Trump signed the memorandum on Wednesday night, June 17, 2026, during a dinner with French President Emmanuel Macron at the Palace of Versailles after the Group of 7 summit.
The White House said the United States will release billions of dollars in frozen or restricted Iranian assets upon implementation of the agreement and will issue sanctions waivers on Iranian oil. The memorandum states that all required licenses, waivers and permissions needed for the relevant financial transactions will be granted by the United States.
Iran pledged in the document to do its best to restore commercial shipping traffic through the Strait of Hormuz to pre-war levels and to refrain from imposing a toll on ships transiting the strait for a 60-day period.
Nuclear-related issues, including uranium enrichment levels and monitoring, were left for future talks. The memorandum includes a pledge by Iran to never purchase or construct nuclear weapons. Vice President JD Vance stated on June 18, 2026, that the deal was structured to reward Iran for good behavior.
President Trump suggested further concessions might include recognition of Iran’s claimed right to enrich uranium and tolerance of its continued ballistic missile development. Republican senators criticized the agreement. Sen.
Roger Wicker said the $300-billion fund would make Iran’s payoff under President Obama’s 2015 deal look like a pittance by comparison. Sen.
U.S. Send a penny to the ayatollah. Sen. John Kennedy stated this week that unless you were homeschooled by a day drinker, no one is confident that Iran is going to do anything. Sen. Bill Cassidy stated that the deal is the worst foreign policy blunder in decades and that 13 Americans are dead, families have paid billions at the pump, sanctions will be lifted, and the bombing has stopped.
