President Donald Trump said on Wednesday that the preliminary US-Iran peace agreement remains unfinished. He also warned that Washington could resume military action if Tehran fails to respect the proposed terms.
Speaking during the Group of Seven summit in France, Trump described the arrangement as a memorandum of understanding rather than a final settlement.
Trump Leaves Military Option Open
Trump said the United States could restart attacks against Iran if he became dissatisfied with the agreement or believed Tehran was not complying.
His remarks highlighted the fragile nature of the negotiations, despite growing expectations that the framework could bring the conflict to an end.
Trump has been discussing the proposal with leaders from Britain, Canada, France, Germany, Italy and Japan during the G7 summit in Evian-les-Bains.
US-Iran Agreement Expected to Be Signed Friday
The preliminary deal is scheduled to be signed during a ceremony in Switzerland on Friday.
Details have continued to emerge during the summit. However, officials have not yet published the full text of the agreement.
Media reports suggest that the proposed 14-point framework would establish a permanent ceasefire, including an end to hostilities in Lebanon.
The agreement would also remove the US naval blockade and restore maritime traffic through the Strait of Hormuz.
Nuclear Negotiations Form Key Part of Deal
The framework is expected to create the basis for new negotiations over Iran’s nuclear programme.
Those discussions could begin after the signing ceremony.
Under the reported terms, Tehran would agree not to develop a nuclear weapon. Iran would also be required to neutralise or eliminate sensitive nuclear material.
Financial support would reportedly depend on Tehran meeting US demands concerning its enriched uranium stockpile and wider nuclear activities.
Iranian Oil Exports Could Resume
One major provision could allow Iran to restart oil and petrochemical exports immediately after the agreement is signed.
Other possible incentives include the release of frozen Iranian assets and a regional reconstruction programme worth approximately $300 billion.
However, Trump said the agreement does not provide immediate and comprehensive sanctions relief. He suggested that additional discussions would be required before wider restrictions could be removed.
Analysts Warn Deal Remains Uncertain
Many elements of the agreement remain subject to change ahead of Friday’s signing.
Deutsche Bank analysts said the uncertainty shows that the proposal remains a high-level memorandum rather than a completed peace settlement.
The lack of a final text also leaves questions about enforcement, sanctions and Iran’s nuclear commitments.
Oil Prices Stabilise Below $80
Brent crude prices moved slightly higher after several days of losses.
The global oil benchmark fell below $80 per barrel on Tuesday for the first time since March. However, prices remained above the levels recorded before the conflict began.
Traders are preparing for additional oil supplies to return to global markets if the Strait of Hormuz reopens.
Strait of Hormuz May Take Time to Reopen
Trump said restrictions on shipping through the Strait of Hormuz would be removed on Friday.
Nevertheless, restoring normal energy flows may take longer. Supply chains, shipping routes and security conditions must stabilise before oil and gas exports can fully recover.
Before the conflict began, around one-fifth of the world’s oil and liquefied natural gas passed through the strategic waterway.
Mines Remain a Risk for Shipping Companies
US forces are continuing efforts to locate and remove mines placed by Iran in the strait.
The preliminary agreement may not resolve this security problem immediately. Shipping companies could therefore remain cautious about sending vessels through the area.
Delays in restoring maritime traffic could limit the return of Gulf energy supplies and keep oil prices elevated.
G7 Seeks More Diverse Energy Supplies
G7 leaders also indicated that they would work to diversify their energy sources.
The objective is to reduce dependence on oil and gas transported through the Strait of Hormuz.
The conflict exposed the risks created by relying heavily on a single strategic route for a large share of global energy trade.
