Don't let the sudden drop in oil prices fool you. The interim peace agreement signed between Donald Trump and Iranian President Masoud Pezeshkian isn't a final handshake. It's a high-stakes pause button on a brutal 110-day war.
While tankers are starting to move through the Strait of Hormuz again, a completely different battle is heating up. It's the war of words over who blinked first. Recently making waves lately: Why Armenia Voting West in 2026 Won't Easily Cut Ties With Moscow.
Hours after the US Navy formally lifted its naval blockade of Iranian ports, Iran's Supreme Leader Mojtaba Khamenei broke his silence. He didn't sound like a man who just survived a crushing blockade. Instead, he claimed Donald Trump signed the memorandum of understanding out of pure desperation.
The view from Tehran
Mojtaba Khamenei hasn't been seen in public since he took over from his father. US intelligence agencies actually think he was badly hurt in the same military strike that killed the previous supreme leader. But his written statement carried a sharp bite. Further details regarding the matter are detailed by NBC News.
He told the Iranian public that he originally opposed the deal as a matter of principle. He only gave it the green light after President Pezeshkian promised that Tehran would completely reject any excessive American demands in the next phase. Khamenei wrote that the American president used every bit of leverage he had left simply because he was desperate to end the conflict.
This rhetoric serves a massive purpose inside Iran. Hardliners are furious that Pezeshkian signed an agreement with Washington. By framing Trump as the desperate party, the Supreme Leader is shielding his own government from accusations of weakness. He made sure to state that sitting down for upcoming face-to-face talks doesn't mean Iran accepts the enemy's positions.
What Washington says happened
Back in Washington, Vice President JD Vance spent his Thursday defending the 14-point deal against heavy friendly fire from congressional Republicans. Some lawmakers think the White House gave up too much ground without getting enough concrete guarantees.
Vance pushed back hard. He told reporters that over 12 million barrels of oil moved through the Strait of Hormuz on the very first night after the blockade ended. He also pointed out that Iranian forces hadn't fired a single shot at commercial vessels for 48 hours.
The administration's defense is simple. The deal got the global economy moving again. But Defense Secretary Pete Hegseth added a much darker warning from a NATO meeting in Brussels. He made it clear that Washington isn't relying on trust. If Tehran breaks its word, Hegseth warned that the Pentagon is fully prepared to restart military operations and drop bombs immediately.
The 60 day clock is ticking
This initial memorandum is essentially a glorified, temporary ceasefire. It buys both sides a strict 60-day window to hash out the massive issues they deferred.
To get the shipping lanes open, both countries had to make massive compromises.
- Shipping lanes: Iran is waiving all transit fees through the Strait of Hormuz for the next 60 days to jumpstart commercial traffic.
- The nuclear issue: Iran agreed to dilute its highly enriched uranium stockpile on its own soil under UN supervision. It's a temporary fix, but it stopped the immediate threat of a nuclear breakout.
- The money: The US Treasury immediately issued waivers for Iranian crude oil and banking services. However, permanent sanctions relief is strictly tied to a final, permanent nuclear settlement. No long-term compliance from Iran means no long-term money.
- The regional footprint: Surprisingly, the deal includes a permanent halt to fighting in Lebanon, forcing Iran to pull back its support for Hezbollah.
What happens next
This temporary truce leaves the global economy in a weird limbo. If you're trying to figure out where this conflict goes next, watch the technical negotiations scheduled to start in Switzerland.
The immediate next steps are highly practical. Shipping companies need to rapidly reassess their maritime insurance policies before sending fleets back through the Gulf. Meanwhile, energy traders are watching the daily barrel counts from the Strait of Hormuz to see if Iran actually keeps the lane toll-free. The real test comes down to whether both sides can turn a fragile 60-day ceasefire into something permanent before the clock runs out.
