The United States and Iran signed a landmark memorandum of understanding on Thursday, ending three and a half months of conflict that disrupted global energy markets.
The agreement followed weeks of fighting that shut down the Strait of Hormuz, one of the world’s most critical chokepoints for oil and shipping traffic.
President Donald Trump, speaking Thursday evening in an interview with Axios, described the deal as a complete capitulation by Tehran, calling it “unconditional surrender.”
Trump said he pursued the agreement specifically to prevent the ongoing conflict from spiraling into a broader global economic catastrophe, arguing that prolonged fighting would have caused irreversible damage.
“This is the kind of thing that could cause a worldwide depression,” Trump said during the interview, defending his decision to reach a deal when he did.
When asked what the conflict had taught him about the limits of his presidential authority, Trump pushed back sharply and defiantly against the premise of the question.
“I haven’t learned that lesson yet. I know there are, but there are no limits,” Trump told Axios, asserting an expansive view of executive power.
The memorandum of understanding establishes a 60-day negotiating window to reach a final agreement, a framework for nuclear talks, and the formal reopening of the Strait of Hormuz to international maritime traffic.
Shipping activity through the strait picked up immediately after the agreement took effect, with at least 18 transits recorded during the June 17-18 period, according to maritime intelligence firm Windward.
U.S. Central Command announced Thursday that American forces had lifted all blockade enforcement on maritime traffic entering and exiting Iranian coastal areas following the signing.
“All U.S. military blockade enforcement efforts have ceased,” CENTCOM said in a social media post, noting that U.S. naval forces would remain in the region to monitor compliance.
A White House spokesperson confirmed that Vice President JD Vance canceled a planned trip to Switzerland, where he had been expected to begin the 60-day follow-on negotiations with Iranian officials, citing logistical reasons.
“The plans for the upcoming technical talks have not been finalized, and the U.S. delegation has been prepared to depart at the first available opportunity. But the logistics of these negotiations have never been simple or predictable,” the spokesperson said.
The deal has drawn significant criticism from Democratic lawmakers who argued Trump failed to achieve the objectives he originally set out when the conflict began.
Senate Minority Leader Chuck Schumer said Trump did a “very poor job of negotiating” and argued the United States emerged from the conflict in a weaker position than before it started.
“This will be regarded as one of the biggest American disasters, and it’s because Trump started this war,” Schumer told reporters.
Senator Peter Welch estimated the war cost approximately $100 billion, said Iran retained leverage through its control of the strait, and called the overall outcome “a failure.”
Trump dismissed the growing chorus of criticism, saying those who believed he went too easy on Tehran were either “jealous, bad people or stupid.”
