U.S. President Donald Trump defended a recent interim agreement with Iran, stating it averted a global economic catastrophe and potential international depression. He warned of renewed attacks if Tehran violates the terms, while G7 leaders welcomed the deal.
The agreement aims to de-escalate tensions in the Middle East, which have driven up energy prices and threatened global food supplies. The outcome of the negotiations and Iran's adherence to the terms will significantly impact global energy markets and geopolitical stability.
U.S. President Donald Trump defended a recent interim agreement with Iran, stating it averted a global economic catastrophe and potential international depression. Speaking at the close of a G7 summit in France, Trump warned he could launch fresh attacks if Tehran failed to honour its commitments, while noting that maritime traffic in the Strait of Hormuz had risen sharply since the truce was announced.
The war, which began with U.S. and Israeli strikes on Iran on February 28, has driven up energy prices, renewed inflationary pressures and sparked concerns about a major food supply crisis. Trump stated that continued conflict could have led to economic catastrophe and thanked Chinese President Xi Jinping and Russian President Vladimir Putin for being neutral during the conflict.
Oil prices fell on prospects for the reopening of the Strait of Hormuz but later regained more than 1% after Trump's threat. A memorandum of understanding with Tehran extends a ceasefire by another 60 days to allow for negotiation of a permanent truce. The deal includes an immediate end to the war on all fronts, the full resumption of maritime traffic in the Strait of Hormuz, the lifting of a U.S. blockade of Iranian ports, the waiving of international sanctions on Iran, and a $300 billion plan for Iran's economic rehabilitation. Iran also undertakes not to build nuclear weapons.
G7 leaders welcomed the agreement, sharing Washington's concerns about Iran's nuclear program, but demanded an immediate ceasefire in Lebanon. Trump also gently rebuked Israeli Prime Minister Benjamin Netanyahu over his tactics in Lebanon against Hezbollah.