US, Iran deal hopeful, but doubts remain

Israel and Iran-backed Hezbollah continued fighting on Monday, even though the United States and Iran say they have reached an agreement aimed toward ending the war. A formal signing ceremony is scheduled for Friday.

US President Donald Trump said on Monday that the agreement with Iran was "all signed" and that the Strait of Hormuz was already "partially open".

Speaking alongside French President Emmanuel Macron at the G7 summit in France, Trump said that he would not attend a formal signing ceremony for the Iran agreement, and that Vice-President JD Vance would travel to Geneva to sign the deal on behalf of the United States.

The US and Iran have electronically signed a memorandum of understanding aimed at ending the war, US media reported on Monday.

The memorandum was signed virtually by Trump, Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf, according to reports.

The terms of the memorandum are expected to be made public within the next 24 to 48 hours, a senior official was quoted as saying.

However, public statements from the two countries show differences.

Trump said the Strait of Hormuz would be "completely open" by Friday.

"They're doing a little hunting for a couple of mines that they've already found, but … ships are starting to go out now," Trump said.

Iranian President Masoud Pezeshkian said on Monday that the memorandum of understanding with the US marks an important step toward ending the war and opening negotiations, but he added that a final agreement has not yet been reached.

He said Iran has prepared "for all options" and that the government's focus, "with or without an agreement", would remain serving the Iranian people.

Regarding the Strait of Hormuz, Iran's foreign ministry spokesman Esmaeil Baghaei said on Monday that Iran was "not seeking to levy transit tolls; however, fees will be charged in exchange for the services that are provided".

Republican Senator Lindsay Graham, a staunch opponent of Tehran, said: "I am somewhat concerned that Iran's view of the agreement seems different than what the American negotiating team is claiming," adding that, "any nuclear deal with Iran will be sent to Congress for review and a vote".

Uncertainty also remained over the situation in Lebanon. Israel's defense minister said Israeli forces would not withdraw from southern Lebanon, despite Iran's claim that the agreement includes an end to the conflict there.

"We will not compromise on Israel's security interests and the protection of our citizens, and we will not withdraw from the security zones," said Israel Katz, warning that "if Iran attacks Israel because of the events in Lebanon, we will strike it with full force."

Some ministers in Prime Minister Benjamin Netanyahu's government have said Israel would not be bound by any agreement between the US and Iran, the Times of Israel reported.

Trump was previously angered by Netanyahu's decision to strike Beirut before the framework of the agreement was announced.

On Monday afternoon, Netanyahu spoke about the US-Iran agreement during a news conference.

"Trump and I have known each other for many years. Many times we see things eye to eye, and sometimes we do not," he said. "In the United States, they say that Trump does everything I ask, and in Israel, they say that I do everything he asks. We are partners. Sometimes we agree and sometimes we disagree."

Another key uncertainty involves Iran's frozen assets. Tehran is seeking access to billions of dollars in state funds blocked in overseas accounts, while Vance said on Monday that Washington has not agreed to provide any financial benefits to Iran during the 60-day ceasefire period.

Oil prices on Monday settled at their lowest levels since early March. Brent crude fell 4.8 percent to close at $83.17 a barrel, while West Texas Intermediate crude dropped 4.9 percent to $80.75 a barrel.

"This is certainly a hopeful start and an indication that things are moving in the right direction. What we have is an agreement on a framework for further negotiations on some of the thorniest issues, particularly the nuclear program that Iran has had," Mehran Kamrava, a professor of government at Georgetown University in Qatar, told China Daily.

"I think the final outcome is yet to be determined, but certainly this is a very hopeful start," said Kamrava.

Both Iran and the US faced pressure from hard-liners in their nations "not to go to the negotiating table, but both have done so", he said.

As the two sides move toward an agreement, questions remain over whether Trump's stated goals at the outset of the war, including preventing Iran from developing a nuclear weapon and eliminating its missile arsenal, have been fully achieved.

Trump, who initially estimated the conflict would last four to six weeks, has come under increasing pressure at home to end US involvement as the November midterm elections approach.