G7 Praises US-Iran Deal as Trump Threatens to Resume Bombing

ÉVIAN-LES-BAINS, France — G7 leaders have issued a joint statement welcoming the United States-Iran nuclear agreement as a “historic opportunity” to prevent Tehran from acquiring nuclear weapons, even as President Donald Trump simultaneously threatened to resume bombing Iran if its leaders “don’t behave.” The contradictory signals have raised urgent questions about the durability of the ceasefire and the coherence of American foreign policy toward Iran.

The memorandum of understanding (MOU), expected to be formally signed on Friday at Switzerland’s Burgenstock mountain resort, aims to end the Iran war that began on February 28, 2026, and reopen the strategically vital Strait of Hormuz. However, the full text of the agreement has not been released, and Trump himself acknowledged that “nobody knows what it is” even as he declared it “very strong.”

G7 Leaders Hail the Breakthrough

In a joint statement issued Wednesday, the leaders of the United States, France, Germany, Italy, the United Kingdom, Canada, and Japan praised the agreement as a major diplomatic achievement. According to CBS News, the statement declared: “We welcome the announcement of a deal between the United States and Iran, secured under the strong leadership of President Trump, with the support of mediating countries, which provides an historic opportunity to prevent Iran from acquiring any nuclear weapon and tackling the threats related to its regional and ballistic activities.”

The G7 leaders also called for a robust follow-on agreement to address Iran’s ballistic missile program and support for proxy forces — issues not directly covered in the initial MOU. They expressed support for a French and British-led maritime security initiative to facilitate the resumption of traffic through the Strait of Hormuz.

Canadian Prime Minister Mark Carney described the Iran deal as a potential “game changer,” while NATO Secretary-General Mark Rutte said the restoration of free passage through the Strait of Hormuz would be “a massive step forward.”

Trump’s Contradictory Threats

Hours after the G7 statement was released, Trump undercut the diplomatic momentum by telling reporters that the MOU was “not final” and warning that he was prepared to resume military action. “If I don’t like it, if they don’t behave, we’ll go right back to dropping bombs right smack in the middle of their head,” Trump said, as reported by The Guardian.

The president also angrily denied reports of a $300 billion reconstruction fund for Iran, insisting the US would not contribute “even 10 cents.” However, he did not deny the fund’s existence, suggesting instead that Gulf states could invest conditionally based on Iran’s behavior. A source with direct knowledge of the deal told Reuters that the fund is a private investment vehicle designed to give both sides an economic incentive to conclude a final agreement, as The Jerusalem Post reported.

The Unseen Agreement

Vice President JD Vance said on CBS Mornings that the text of the deal would be released Friday “at the latest,” adding that Qatari and Pakistani mediators had asked for a delayed release. Vance described the agreement as providing a framework “whereby if the Iranians give us what we need on stopping the funding of terrorism, on no longer pursuing a nuclear weapon, then they can get some benefits.”

A regional diplomat told NBC News that a 14-point text circulated by CNN and Bloomberg is a draft from May, not the final signed version. The MOU reportedly reiterates Iran’s opposition to possessing nuclear weapons but postpones talks on diluting or destroying its highly enriched uranium stockpile to a 60-day negotiation period.

Strait of Hormuz and Oil Markets

The deal aims to reopen the Strait of Hormuz, through which roughly 20% of the world’s crude oil and LNG supplies transited before the war. Commercial traffic remains extremely low — in the single digits compared to a historic average of around 135 vessels per day. However, five sanctioned Iranian ships have already crossed the US naval blockade line in the Gulf of Oman, with at least two NITC supertankers carrying 3.8 million barrels of crude oil exiting the blockade perimeter.

Oil prices have fallen on deal optimism, with Brent crude dipping below $80 per barrel. Benchmark US crude was down 1.1% to $75.21 per barrel on Wednesday. Trump claimed oil would fall to $72 per barrel.

Israel Excluded and Unbound

Israel has not seen the text of the agreement, creating significant tension between Washington and its closest Middle Eastern ally. Israeli National Security Minister Itamar Ben-Gvir declared that “Trump’s agreement does not bind us,” and Israeli strikes in southern Lebanon have continued despite the ceasefire announcement. Iran’s Foreign Minister Abbas Araghchi has warned that continuing Israeli military operations in Lebanon would violate the agreement.

A Notable Shift on Ukraine

In a significant development, Trump signed onto a G7 joint statement calling for increased pressure on Russia, including tougher sanctions and additional arms deliveries to Ukraine. Carney hailed this as evidence of a “more realistic” stance by Trump on the war, marking a departure from the president’s previous reluctance to commit to such measures.

What to Watch For

The formal signing of the MOU is expected on Friday in Switzerland, followed by a 60-day negotiation period toward a comprehensive final agreement. Key questions remain: Will Iran accept G7 demands for follow-on negotiations on its ballistic missile program? Can Trump’s contradictory messaging be reconciled, or does it reflect genuine policy divisions within his administration? And will Israel comply with any ceasefire provisions regarding Lebanon?

As Pope Leo XIV said in welcoming the agreement, it represents an “encouraging result of patient work in dialogue and negotiation.” But with Trump’s threats hanging in the air, the path from this framework to lasting peace remains uncertain.