US and Iran Prepare for Deal Signing With Both Claiming Victory

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(Bloomberg) — The US and Iran are preparing to formally sign their interim peace deal in Switzerland on Friday, with both sides claiming victory and oil traders and shippers unsure over how quickly the Strait of Hormuz will be reopened.

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The text of the so-called memorandum of understanding — a 14-point document that should lead to a two-month ceasefire extension and the start of complicated negotiations over Iran’s nuclear program — has yet to be published. 

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A senior US official said it’s possible that happens in the next two days, ahead of the signing ceremony in Geneva.

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Vice President JD Vance is expected to head the American delegation, while Iran will likely be represented by Parliament Speaker Mohammad Bagher Ghalibaf.

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US President Donald Trump is in France for a Group of Seven summit, where the Iran war — which has caused energy prices to soar — is featuring prominently. G7 nations such as France, the UK and Italy are likely to play key roles in any de-mining of the strait that’s needed to facilitate its reopening.

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Speaking at the summit on Tuesday, Trump said the agreement is a “done deal,” while adding that the US would not invest money in Iran or pay reparations for the war. Washington is dealing with “rational” people in the Islamic Republic, he said, reiterating that the country will not be able to develop nuclear weapons.

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“They’re going have to prove themselves, I think, before any of us go in there,” Trump said when asked by a reporter about economic opportunities for Iran. 

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On Monday, Italian Defense Minister Guido Crosetto and US counterpart Pete Hegseth met in Washington, where they discussed a four-ship flotilla Rome is preparing to send to the Hormuz strait, according to one G7 official familiar with the matter. This includes two mine-sweepers now in Djibouti, where they were dispatched to prepare for the mission, the official said.

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Trump is set to hold bilateral meetings with United Arab Emirates President Sheikh Mohamed bin Zayed and Qatar’s Emir Sheikh Tamim bin Hamad on Tuesday as part of the G7 summit. Those countries may play a part in helping create, along with the US, a $300 billion development fund for Iran in the aftermath of the conflict.

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The US will look to other countries and the private sector to pledge investments in Iran, the American official said. The Islamic Republic, which has a population of 90 million people and some of the world’s biggest oil and natural gas reserves, wanted the fund included in the MOU to help with reconstruction. Iran said the war, which began on Feb. 28 with a US-Israeli bombardment of the country, cost it more than $250 billion in economic damage.

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Iranian officials have claimed the MOU will lead to it getting access to tens of billions of dollars of frozen funds held in places such as Qatar. Trump and his administration have consistently said the Islamic Republic will get no funds unfrozen or sanctions lifted on the signing of the agreement. That, they’ve said, will happen in steps, contingent on Tehran fulfilling the terms of the deal.