US President Donald Trump on Wednesday, 17 June unveiled the details of a new agreement with Iran at the conclusion of the G7 summit in Evian, France, saying the deal would prevent Tehran from acquiring a nuclear weapon, reopen the Strait of Hormuz, and lay the groundwork for a wider diplomatic reset across the Middle East.

The announcement marks one of the most significant diplomatic developments of Trump's second term, arriving amid months of escalating tensions over Iran's nuclear programme and disruptions to global shipping lanes.

What the Agreement Contains

Senior US officials released the text of a 14-paragraph memorandum of understanding that commits Iran not to 'procure or develop nuclear weapons', restores commercial shipping through the Strait of Hormuz, and establishes a 60-day window for negotiating a final, comprehensive agreement.

The memorandum also links sanctions relief to Iranian compliance and provides for international oversight of Tehran's enriched nuclear material — two elements that were central sticking points in earlier diplomatic rounds, including the 2015 JCPOA.

Trump's Words at the G7

'On Sunday, we reached an agreement with Iran that achieves everything we set out to accomplish,' Trump said. 'Ending the current conflict, reopening the Strait of Hormuz and preventing Iran from obtaining a nuclear weapon.'

Trump also made clear the deal would be enforced through a combination of diplomacy, economic pressure, and the credible threat of force. 'If they don't adhere to the agreement,' he said, 'we're going to bomb the hell out of them.'

Global Backing and PM Modi's Role

Trump said the agreement received strong backing from world leaders attending the summit, specifically citing Prime Minister Narendra Modi and several Gulf leaders. 'Prime Minister Modi was here, we had a long talk,' Trump said. 'They are thrilled that we made a deal.'

Trump also said he consulted with leaders from Saudi Arabia, Qatar, the United Arab Emirates, and Egypt during the summit. He additionally credited Chinese President Xi Jinping and Russian President Vladimir Putin with remaining neutral during the conflict — an acknowledgement of the geopolitical balancing act that preceded the agreement.

Implications for the Broader Middle East

Beyond the immediate nuclear and shipping dimensions, Trump framed the deal as a potential foundation for wider regional diplomacy. 'It's my hope that the peace agreement will be the beginning of a much larger deal all across the Middle East,' he said.

Trump pointed specifically to expanding the Abraham Accords, stabilising Lebanon, and addressing Iran-backed proxy groups as future priorities. He also publicly urged Israeli Prime Minister Benjamin Netanyahu to exercise greater restraint in Lebanon. 'You can do a little softer touch, Bibi,' Trump said. 'You don't have to knock down a building every time somebody walks into it that's from Hezbollah.'

What It Means for India and Energy Markets

For India and other major energy importers, the reopening of the Strait of Hormuz carries direct economic significance — a substantial share of global crude oil exports transits the narrow waterway linking the Persian Gulf to international markets. Trump argued that restored shipping flows would help push down global energy prices. 'Oil prices are plummeting,' he said.

With the 60-day negotiation window now in motion, the coming weeks will test whether the memorandum of understanding can be converted into a durable, verifiable accord — or whether it joins a long line of Middle East diplomatic frameworks that stalled at the implementation stage.