Here's the latest
• US-Iran agreement: Iran will be able to export oil as soon as its agreement with the US is signed, according to a draft copy of the document obtained by CNN, which also states Iran will “never produce nuclear weapons.” The signing will kickstart a 60-day window to negotiate the technical terms of a lasting deal. Read the draft here.
• Trump on agreement: President Donald Trump said the agreement is not a final deal, adding that the US will resume strikes if Iran doesn’t “behave.” He also denied the US would be investing in a $300 billion reconstruction fund for Iran, or that he asked Gulf countries to commit funds.
• G7 summit: World leaders pledged to “support” the implementation of the agreement, due to be signed Friday. Trump is scheduled to appear at meetings again today at the summit in France, after taking part in a morning session.
How much of Iran’s money is frozen and where is it?
A draft agreement between the United States and Iran obtained by CNN commits Washington to unfreezing Tehran’s assets when a final agreement is reached.
Iran had initially insisted that any deal include the release of $24 billion of its frozen funds. A US official told CNN on Sunday that “no frozen funds will be released without the Iranians implementing their commitments.”
The push for a guaranteed, immediate transfer reflects deep Iranian mistrust of the US, rooted in the collapse of the 2015 Iran nuclear agreement reached under the Obama administration, according to Frederic Schneider, a nonresident senior fellow at the Middle East Council.
“A promise of future sanction relief is worth very little to Iran, because any such promise can be reversed by the next administration, or Trump himself,” he said.
While no precise figure of Iran’s frozen funds is publicly available, Iranian media outlets and analysts estimate that it ranges between $124 billion and $167 billion.
Schneider says the amount is roughly equivalent to a quarter of Iran’s 2024 economic output.
Here’s what we know about where some of Iran’s frozen funds are:
- Qatar: In 2023, $6 billion in Iranian funds frozen in South Korea were transferred to accounts in Qatar as part of an agreement that secured the release of American prisoners held in Iran. Under the arrangement, Iran was to be allowed to use the funds for humanitarian purchases. But CNN reported later that year that the US and Qatar reached a “quiet understanding” not to allow Iran to access the funds.
- Oman: More than $10 billion in Iranian electricity revenues that were held in Iraqi accounts were transferred under a waiver issued by the Biden administration into restricted accounts in Oman and other countries. The funds remain subject to sanctions limitations, according to a 2023 House Financial Services Committee hearing document.
- Luxembourg: $ 1.7 billion of Iranian funds are known to be frozen due to sanctions, according to IRNA.
- Japan: Iran has repeatedly called for the release of Iran’s financial assets held in Japan. According to Reuters, these funds are estimated at around $1.5 billion.
US-Iran agreement not final, Trump says
President Donald Trump said today that the US-Iran agreement to end the war is not a final deal, adding that the United States will resume strikes if Iran doesn’t “behave.”
When asked by a reporter during a meeting with Egyptian President Abdel Fattah el-Sisi if the agreement is final, Trump said, “No, it’s not final. It’s a memorandum of understanding.”
CNN has obtained a draft copy of the agreement, which lays out the terms of the ceasefire, the reopening of the Strait of Hormuz, some financial relief for Iran and a reiteration from Tehran that it will never produce a nuclear weapon.
Trump denies US will invest in Iran through $300 billion fund in agreement
President Donald Trump denied that the United States would be investing in a $300 billion reconstruction fund for Iran through the memorandum of understanding, nor did he ask Gulf Countries to commit to investing.
“You can invest if you want. I mean, what am I gonna do? Say, nobody’s ever allowed to invest? No, we’re not investing, we’re not putting up 10 cents, and people can decide to do that, but that’s up to them,” Trump told reporters at a bilateral meeting alongside Egyptian President Abdel Fattah el-Sisi. “We are not investing in it, and we do not have a fund.”
Pressed on whether he’s asking the Gulf countries to invest in the fund, Trump said, “No, I’m not, I’m not. If they do it, fine. But I would say they won’t be doing it for a while until they find out the behavior. It’s a behavior thing, but we are not investing.”
According to a draft copy of the MOU obtained by CNN, “The United States undertakes, together with its regional partners, to create a comprehensive plan agreed upon by both parties for the rehabilitation and economic development of the Islamic Republic of Iran, while ensuring financing of at least $300 billion” with the implementation formulated 60 days from signing.
Trump is expected to deliver a news conference later today, the final day of the G7, where he’ll be “discussing a little bit about the deal with Iran.”
Leaked US-Iran draft doesn't explicitly mention the Strait of Hormuz. Here’s what we know
The draft of the memorandum of understanding for a ceasefire between the United States and Iran has not yet been released publicly, but CNN has obtained a copy from a US official. It’s unclear whether the text shared with CNN will reflect the wording of the document due to be signed in person on Friday.
Most strikingly, the memorandum makes no explicit mention of the Strait of Hormuz, despite the waterway emerging as the central issue in the negotiations. While the text states that vessel traffic between the Persian Gulf and the Gulf of Oman will return to prewar levels within 30 days, it never addresses the future status of the strategic oil and gas chokepoint directly.
US officials have rejected suggestions that the agreement grants Iran control over the waterway, while Tehran has maintained that it will continue to regulate transit and collect fees. The text states that maritime traffic will return to prewar levels “on the part of the Islamic Republic of Iran,” wording that leaves the future status of the strait open to interpretation.
Aside from the Strait of Hormuz, what the memorandum omits may be as telling as what it includes.
Here’s what the deal includes:
- Ending the war on all fronts, including Lebanon.
- Iran’s pledge to never obtain a nuclear weapon.
- US commits to issue sanctions waivers on Iran’s energy exports immediately.
- US to lift naval blockade of Iran immediately.
- Regional ship traffic to return to prewar levels within 30 days.
- US commitment to eventually lift all sanctions against Iran.
What it doesn’t include:
- Iran’s nuclear program: The fate of Iran’s nuclear program and its near weapons grade uranium has been relegated to future negotiations, despite Trump administration officials saying the agreement would include provisions to dismantle the nuclear program. The document says Iran will maintain “the status quo” of the nuclear program.
- Proxy groups and missiles: The document makes no mention of Iran’s support for regional militant groups that have attacked US allies in the Middle East or the ballistic missiles it fired at its neighbors, despite US officials claiming otherwise ahead of the agreement.
Sarah Tamimi contributed to this post.
Read the full 14-point draft agreement between the US and Iran
The draft agreement between Iran and the US lays out the terms of the ceasefire between the bitter rivals, the reopening of the Strait of Hormuz, some financial relief for Iran and a reiteration from Tehran that it will never produce a nuclear weapon, according to a copy of the text obtained by CNN.
The 14-point memorandum of understanding has not yet been officially released but a copy of it was obtained by CNN from a US official. A diplomat who saw it at the G7 summit in France this week confirmed its contents, as did two other diplomatic sources with knowledge of negotiations.
Under the agreement, the US will allow Iran to sell its oil and petrochemical products, and Tehran may be able to tap into a $300 billion development fund if it meets commitments related to its nuclear program in further negotiations. The document does not include specifics on what will become of Iran’s highly enriched uranium.
The US official told CNN that the text reflects the agreement signed digitally by President Donald Trump, Vice President JD Vance and Iranian parliamentary speaker Mohammad Bagher Ghalibaf on Sunday. However, given both the US and Iranians’ secrecy around the language, it remains unclear whether the draft text shared with CNN will reflect the exact wording of the final document due to be signed in person on Friday in Switzerland. Technical details are also being finalized so the wording could still shift.
Speaking to CNN, US officials have downplayed the significance of the memo itself, calling it a “political document” that does not reflect critical back-channel commitments Iran has made to the US, specifically on the future of Tehran’s nuclear program. The White House did not respond to a request for comment when presented with the draft obtained by CNN. The semi-official Iranian news agency Tasnim described leaked versions of the draft as inaccurate. Bloomberg earlier published a version of the draft.
The MoU is due to be formally signed Friday, triggering a 60 day-window to negotiate the final terms of a deal. You can read the full text here.
A look inside this morning's meeting of G7 leaders
World leaders met for a working session in Évian-les-Bains, France this morning, on the final day of this year’s G7 summit.
The meeting came after they released a joint statement on a wide range of geopolitical topics, including the developments in the Middle East as well as Russia’s war in Ukraine.
Take a look at what’s been happening so far today in the images below:
NATO chief insists US “committed” to alliance despite decision to “rightsize” contributions
NATO Secretary-General Mark Rutte insisted Wednesday that the US remained “committed to NATO,” despite Washington’s decision to reduce its contributions to the alliance’s force model, referring to the framework by which the organization coordinates its war plans.
“That commitment comes with an expectation that allies will more fairly share the responsibility for our security here in Europe,” Rutte told reporters on the sidelines of a G7 meeting in Evian-les-Bains, France.
“We have looked at the division of labor in the context of conventional forces and we see that European allies and Canada are ready, willing and able to do more. Based on this, the United States has adjusted its pledges to the NATO force model,” he said.
“This is not primarily about where forces and assets are currently, but about who would do what if our defense plans were activated. Historically, this was overly reliant on the United States,” he added.
The United States European Command announced earlier this month that it would “rightsize its contributions to the NATO force model,” citing a need for the alliance to not over rely on US forces.
Rutte sidestepped laying out a timeline for these changes and did not address specifics, saying that NATO will never comment on precise numbers “because we will never make our enemies wiser on what we are doing.”
Instead, he sought to highlight other NATO allies increasing their defense spending and defense industrial output.
G7 leaders "welcome" US agreement with Iran, offer assistance to boats in Strait of Hormuz
In a joint statement, the world leaders at the G7 summit in Évian-les-Bains, France have welcomed the agreement between the United States and Iran.
The agreement “provides an historic opportunity to prevent Iran from acquiring any nuclear weapon and tackling the threats related to its regional and ballistic activities,” the leaders said, offering their support for its implementation.
Here’s a look at what else the leaders said:
- Following on from the Memorandum of Understanding made, the leaders said they “strongly support a robust and comprehensive” diplomatic agreement to bring “peace and security for all in the region”
- Referencing Iran’s claim that it will collect “fees” for maritime services offered in the Strait of Hormuz, they called the right to transit without tolls or restrictions “the bedrock of international trade.”
- They also suggested a defensive initiative led by France and the UK could play “an important role” in helping vessels navigate the Strait of Hormuz once it opens.
- To reduce the chance of vulnerability should the Strait of Hormuz be impacted again, the leaders said they will commit to diversifying their energy supply routes. They welcomed “the potential for Canada to deliver significant additional capacity to global markets in coming years.”
- On Iran’s nuclear program, negotiations need to ensure that Tehran never obtains a nuclear weapon, the statement said. Regional and international partners, as well as International Atomic Energy Agency (IAEA), should help in these negotiations, they said.
- There is support for “an immediate robust ceasefire” in Lebanon, as well as its government’s efforts to disarm Hezbollah. They also called for the protection of “Lebanon’s territorial integrity and sovereignty with the appropriate international security guarantees.”
- They pledged to “accelerate humanitarian and reconstruction efforts” and implement “relevant political and security measures” in Gaza. “We call for ending violence in the West Bank,” the G7 leaders stated.
Trump late to morning G7 session
President Donald Trump arrived late to a morning G7 session that is underway now in Évian-les-Bains.
US Treasury Secretary Scott Bessent was in the American leader’s seat, behind a nameplate with Trump’s name on it, as French President Emmanuel Macron began the session.
After a few moments, Trump walked in the room, almost an hour after the meeting was scheduled to start. “I’m the boss,” he joked while standing near the head of the table.
“Hello! How are you,” Macron said, standing up to shake Trump’s hand.
Turning to the press, Trump asked: “Would you like to stay for the meeting? It’s OK with me.”
But French organizers quickly escorted media from the room.
US agreement "a major achievement for Iran," former Israeli intel official says
Danny Citrinowicz, former head of the Iran branch in Israeli military intelligence, tells CNN’s Rosemary Church why Iranian leaders may “feel that they have the upper hand and they won the war.”
Lebanese store owner determined to rebuild after supermarket hit a second time
Parts of southern Lebanon have faced repeated devastation as Israel ramped up strikes on Iran-backed Hezbollah months ago, leaving residents repeatedly displaced and struggling to return to what remains of their homes and livelihoods.
Mohammed Fahess, a supermarket owner in the Jibchit district of Nabatieh in southern Lebanon, told Reuters his business had been hit for a second time after suffering damage in the 2024-2025 bout of conflict between Israel and Hezbollah.
“We were displaced because of the war, and now we’ve returned. As you can see, there’s destruction,” Fahess told Reuters on Monday.
Although there has been a “significantly reduced level” of violence and exchange of fire across the Israel-Lebanon border compared to the weekend, according to the UN, Israeli strikes have continued, killing at least four people on Tuesday.
Trump has repeatedly insulted most of his Group of 7 counterparts
The G7 includes Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
Here’s what Trump has said about each country’s leader:
What the US-Iran agreement means for the Middle East
Displaced families are beginning to return to southern Lebanon after the US and Iran signed a memorandum of understanding aimed at ending the wider conflict. But key questions remain. CNN’s Paula Hancocks reports.
Displaced families are beginning to return to southern Lebanon after the US and Iran signed a memorandum of understanding aimed at ending the wider conflict. While many hope the agreement could bring greater stability to the region, key questions remain about what happens next. CNN's Paula Hancocks explains what it could mean for the wider Middle East.
Israel's strikes in Lebanon are stoking tensions with Trump and Iran. Here's the latest
President Donald Trump again publicly criticized Israel’s attacks in Lebanon, as the deadly conflict threatens to upend US-Iran negotiations.
Trump said Israel has been fighting Iran-backed Hezbollah for “too long,” adding that “too many people are being killed.”
Trump again his frustration with Israel’s Prime Minister Benjamin Netanyahu, telling reporters Tuesday he needed to be “more responsible with respect to Lebanon.”
Here’s what to know:
- On the ground: The United Nations peacekeeping mission in Lebanon (UNIFIL) reported a “significantly reduced level” of violence along the Israel-Lebanon border, citing the US-Iran agreement as having a “positive impact on the situation.” But the Israeli military has yet to fully stop hostilities, killing at least four people in separate strikes Tuesday on Lebanon, according to Lebanese state media.
- Warning to Israel: Iran’s military has warned Israel to end its southern Lebanon offensive against Hezbollah, threatening a “harsh response” if aggression continues, according to a statement published by the semi-official Fars News Agency.
- Iran demands Israeli withdrawal: Iranian Foreign Minister Abbas Araghchi said that Tehran sees the conflict in Lebanon as “linked and interdependent” with the war between the US and Iran. Iran has long demanded Israel withdraw from Lebanon as part of its agreement with the US. But a senior US official has said that the agreement does not require Israel to withdraw, and Israel has refused to end its attacks on Hezbollah.
- Trump points to Syria: Trump suggested Israel let Syrian President Ahmed Al-Sharaa “take care of Hezbollah,” telling reporters at the G7 summit that “the man that’s running Syria now” is “very good with Hezbollah.” It is unclear exactly what Trump is suggesting but prospect of Syrian troops entering Lebanon is likely to stoke deeper fears in Lebanon.
CNN’s Ivana Kottasová, Max Saltman, Charbel Mallo, Eyad Kourdi, Alayna Treene, Kevin Liptak and Zeena Saifi contributed reporting.
Netanyahu needs to be "more responsible" with Lebanon, Trump says
President Donald Trump criticized Benjamin Netanyahu during bilateral meetings at the G7 summit, saying the Israeli prime minister needs to be “more responsible with respect to Lebanon.”
President Donald Trump criticized Israeli Prime Minister Benjamin Netanyahu during bilateral meetings at the G7 summit, saying the Israeli prime minister needs to be "more responsible with respect to Lebanon," while also praising his relationship with Netanyahu.
Why hasn't the text of the US-Iran agreement been released? Here's what we know
President Donald Trump has vowed to publicly release the text of the agreement with Iran “in a couple of days” and even floated reciting the entire document in front of cameras.
The timing: The US has not released the text because officials needed to “sequence this in the right way,” Vice President JD Vance said. “There are sensitivities that exist in the Arab and Muslim world that we’re trying to be responsive to.”
The uncertainty has raised tensions domestically and internationally. Israel’s request to see the text was rejected by the US, an Israeli source told CNN. But Trump has committed to sending the text of the agreement to Congress for review.
The details: The text spells out what financial relief Iran can expect if it fulfills its commitments, including the ability to tap into a $300 billion development fund, according to US officials. Trump and Vance have been adamant that the fund will not be financed by American dollars.
Mediators are also discussing nonaggression pacts, non-state armed groups and nuclear issues with Iran, according to Qatar.
Canadian Prime Minister Mark Carney told CNN he’d seen the agreement, describing it as a “game changer.” Carney said it calls for “a cease fire for that 60-day period,” spelling out “a series of conditions and what will happen when they are fulfilled.”
US officials are downplaying the significance of the specific language in the agreement. They described the text as incredibly vague, mainly intended to create a more favorable environment for the highly technical, in-person talks to come. The text is also aimed at providing Iran the ability to sell it politically to their internal audience, the officials said.
They also said the agreement doesn’t reflect back-channel commitments Iran has made to the US, which the officials argued gave them more confidence in signing on to the arrangement.
In the background: Trump’s national security team met almost daily to discuss the evolving agreement to end the war, with many concerned that Tehran would not hold up its end of the bargain, administration officials directly involved in the negotiations said.
CIA Director John Ratcliffe and Defense Secretary Pete Hegseth were among the “most pessimistic” about whether the Iranians would honor their commitments to make substantive concessions on their nuclear program, an official said.
Nearly every senior official, including Vance, Secretary of State Marco Rubio, Trump’s envoys Steve Witkoff and Jared Kushner, raised reservations, officials said. They ultimately reached Trump-driven consensus: “We want to get this thing over with,” an administration official directly involved in the talks told CNN.
CNN’s Christopher Lamb, Morgan Rimmer, Max Saltman, Morgan Leason, Tal Shalev and Alejandra Jaramillo contributed to this report.
"Gamechanger": Canada prime minister says he saw the Iran agreement
Canadian Prime Minister Mark Carney told CNN on Tuesday that the memorandum of understanding between Iran and the US is “a game changer,” pledging his nation’s support to implementing the agreement.
“We’re very pleased with the deal that’s been struck,” Carney told CNN’s Kaitlan Collins in an exclusive interview on the grounds of the G7 Summit.
Carney confirmed he’d seen the agreement — which the Trump administration has kept under wraps but has pledged to release closer to the official signing ceremony Friday in Switzerland. He said he was “absolutely” on board, “as is everyone else” participating in this week’s summit.
Carney’s comments represent one of the first assessments of the agreement from someone who is not directly involved in the negotiations.
He said it calls for “a cease fire for that 60-day period,” spelling out “a series of conditions and what will happen when they are fulfilled.”
He also acknowledged “a big financial incentive” for Iran to hold up its end of the bargain and take concrete steps in the next two months, including allowing traffic through the Strait of Hormuz, assisting in clearing mines and negotiating around the removal of enriched uranium stockpiles.
CNN's Kaitlan Collins speaks with Canadian Prime Minister Mark Carney about the Iran-US agreement.
Trump appears to be losing patience with Netanyahu, again voicing frustration over Lebanon
CNN’s Kevin Liptak reports on the G7 summit, where President Donald Trump appears to be losing patience with Israeli Prime Minister Netanyahu, suggesting that Syria might “do a better job” at dealing with Hezbollah.
