Under a new peace agreement signed by US President Donald Trump, ships will be able to pass through the Strait of Hormuz without paying tolls. The United States clarified that Iran must fulfill all commitments under the deal before receiving any economic benefits. According to AFP, a senior US official said a proposed $300 billion fund may be created to help rebuild war-torn Iran, but disbursement will depend on Tehran’s progress in implementing the agreement.

The memorandum of understanding was signed electronically by President Trump, Vice President JD Vance, and Iranian Parliament Speaker Mohammad Bagher Ghalibaf. A US official said Trump’s personal signature was meant to signal his commitment to the peace process. Vice President Vance described the document as a brief, one-and-a-half-page text, leaving complex issues such as Iran’s nuclear program for later negotiations.

Vance also stated that international nuclear inspectors would be allowed to re-enter Iran to assist in dismantling enriched uranium stockpiles. Expert-level discussions are scheduled this week to finalize details, ahead of a formal signing ceremony planned in Geneva, Switzerland.