Trump says Iran deal averts ‘economic catastrophe’
US President Donald Trump defended the interim agreement reached with Iran and said that the agreement prevented a global economic disaster, while warning that the US could launch new attacks if Iran does not fulfill its commitments.
Speaking at the close of the G7 summit in France, Trump said maritime traffic in the Strait of Hormuz had increased sharply since the ceasefire was declared three days ago and expressed hope that this could be the beginning of broader peace in the Middle East.
“So the one thing I didn’t want to see was I didn’t want to see economic disaster. If you had kept this up, this could have happened,” Trump said.
He thanked Chinese President Xi Jinping and Russian President Vladimir Putin for being “neutral” during the conflict, saying they had not thwarted his efforts to curb Iran’s nuclear ambitions.
Oil prices fell again on Wednesday on expectations that the Strait of Hormuz will reopen; Brent crude futures fell below $80, the lowest level since the opening salvos of the US-Iran conflict.
But they later regained more than one percent after Trump said he could continue the war if he was unhappy with Iran.
.@POTUS: “If I go another 3 or 4 weeks, it’s the same people who are critical [of the deal] ‘It took too long!’ he would say. … They had 159 ships. When we sank the last ship the Times refused to report on it… We need a fair press and that’s why they’re all doing this… pic.twitter.com/XcJobE3VGs— Rapid Response 47 (@RapidResponse47) June 17, 2026
Speaking to reporters, a senior US official read the text of the memorandum of understanding signed with Iran, but said the parties could still leave until a binding agreement was reached.
The 14-point draft, the contents of which have already been widely distributed before publication, extends the ceasefire declared in April for another 60 days to allow the two sides to negotiate a permanent ceasefire.
The memorandum of understanding, which is expected to be signed at a ceremony to be held in Switzerland on Friday, aims to “end military operations on all fronts, including Lebanon, immediately and permanently,” the official told reporters on condition of anonymity.
According to the terms of the document, neither side will carry out any further military operations against the other after the agreement is signed.
The parties also pledged to “respect each other’s sovereignty and territorial integrity and not interfere in each other’s internal affairs.”
They also agree to begin negotiations with the aim of reaching a final agreement within a maximum of 60 days, although this period can be extended by mutual consent.
According to the text, the US naval blockade on Iran will be completely lifted within 30 days, and US military forces in the region will be reduced to pre-war levels.
Commercial ships will be guaranteed safe and free passage through the Strait of Hormuz for 60 days.
The US official said Iran is expected to work on a longer-term arrangement with Oman and other Gulf countries bordering the waterway to ensure continued free passage.
Under the framework agreement, the United States also commits to work with regional partners on a plan worth at least US$300 billion ($426 billion) for Iran’s reconstruction and economic development.
Trump gently chided Israeli Prime Minister Benjamin Netanyahu on Wednesday for his tactics against Hezbollah in Lebanon.
The two men have clashed repeatedly over Israel’s refusal to restrict its pursuit of Hezbollah in Lebanon, where Iran’s main demand is an end to hostilities.
“Netanyahu is a good guy, he gets a little excited sometimes,” Trump told reporters.
“We have a small disagreement on Lebanon. I say you can use a softer touch, Bibi,” he said, using Netanyahu’s nickname.
“You don’t need to destroy the building every time someone from Hezbollah enters it.”
Lebanese media reported new Israeli airstrikes and artillery fire in several towns in the south on Wednesday.
Lebanese security sources said Hezbollah also carried out two drone attacks on Israeli forces in the south.
Israeli officials later said five of their soldiers were injured in two Hezbollah drone strikes in southern Lebanon.
with DPA
