US and Iran Sign Peace Deal as Netanyahu Digs In Over Lebanon

by | Jun 18, 2026 | News

The United States and Iran have signed the memorandum of understanding meant to end their war, a dramatic diplomatic turn that President Trump celebrated even as he sharpened his public criticism of Israel and left Prime Minister Benjamin Netanyahu vowing defiance over southern Lebanon.

The 14-point agreement, signed by Trump and Iranian President Pezeshkian, takes effect immediately as an interim arrangement while broader negotiations continue. Trump called the moment hard-won, while Tehran boasted it had secured everything it wanted. Under the deal, the Strait of Hormuz is to reopen, though Iran says it will charge tolls after 60 days, and Iran agreed to dilute its enriched uranium on site under the supervision of the International Atomic Energy Agency. The agency’s chief, Rafael Grossi, called the verification task highly complex but welcomed the framework. Oil prices fell as markets absorbed the news.

Trump spent much of a lengthy press conference defending the agreement against critics who argued it achieved even less than the 2015 nuclear deal, and he warned he would order strikes on Iran again if it failed to comply. He insisted further military action would have triggered a global economic catastrophe. In the same breath, he turned on Israel, acknowledging its right to defend itself against Hezbollah while calling its conduct at times too heavy-handed, and suggesting Israel was in no position to criticize the Iran deal.

Jerusalem is not retreating. Netanyahu stressed that Israeli troops will not withdraw from southern Lebanon and will hold their security zone as long as necessary. An official close to the prime minister described Israel as conducting stubborn negotiations with Washington, insisting it would not pull back from positions south of the Litani River. The friction is not merely rhetorical. An Israeli drone strike in southern Lebanon on Wednesday killed one person and seriously wounded another, even as overall violence there declined sharply after the agreement.

Israeli officials sought to project calm. Ambassador to Washington Yechiel Leiter expressed faith in Trump’s vision for the Middle East, and Vice President JD Vance offered fresh details defending the ceasefire framework. Yet the gap between the two allies is now openly visible, and the coming weeks of talks over Lebanon will test how far Washington is willing to press Israel, and how far Israel is willing to bend.

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