Donald Trump signed the initial peace agreement with Iran inside the gilded halls of the Palace of Versailles on Wednesday evening, moments before a dinner with French President Emmanuel Macron. The US president casually confirmed the moment to reporters: "It's signed, yeah. I signed it in Versailles."
But even as the ink dried, Iran’s chief negotiator, Mohammad Bagher Ghalibaf, ridiculed the deal on state television, calling it "a record of US failure" and warning: "People will see it and judge." Ghalibaf reiterated that Tehran would charge vessels crossing the Strait of Hormuz after the 60-day fee-free period outlined in the memorandum of understanding.
“Trump signs Iran peace deal at Versailles; Tehran calls it 'ultimate American failure'.”
The 14-point plan, whose full text was released by US officials earlier in the day, includes reopening the Strait of Hormuz, ending the wars in Iran and Lebanon, and establishing a $300bn reconstruction fund for Tehran. Trump told the G7 that without the agreement the world would have faced "economic catastrophe."
Yet the peace process faces immediate threats. On Wednesday, Israel reportedly struck targets in southern Lebanon again, brushing off Trump’s warnings. Meanwhile, Trump himself appeared to hedge, joking about whether he would blame Vice President JD Vance if the deal collapsed. Asked by a Fox News reporter whether Vance was being set up as a scapegoat, Trump replied with a straight face: "I like that idea, sure." The room burst into laughter as he added: "This way, if it works out, I'm going to take the credit. If it doesn't work out, I'm blaming JD."
The agreement is now in force after a "digital" signing, with 60 days for both sides to demonstrate adherence. The formal signing is scheduled for Friday in Geneva, where Vance will travel to sign it with Iran. Trump, 80, will return to the US from the G7 summit rather than staying in Europe.
Separately, Australia lifted its blanket travel bans for Gulf nations – the UAE, Qatar, Bahrain, Israel, and Kuwait – after Trump announced the peace deal. Foreign Minister Penny Wong confirmed the "do not travel" advisory had been lowered.
On sanctions, Trump suggested they would be removed once Iran "behaves," adding: "We have taken their money, it's not our money, it's their money, and we froze it. At a certain point in time I guess we're going to have to give it back."