The Trump administration announced it will maintain its military buildup in the Middle East despite signing a new agreement with Iran, reflecting ongoing distrust between the two nations. A senior U.S. official stated that the current military force posture will remain in place during a 60-day negotiation period, with hopes to draw down forces later. The agreement includes a framework for reducing military forces contingent on a final deal.
President Donald Trump, Vice President JD Vance, and Iranian Parliament Speaker Mohammad Bagher Ghalibaf have signed the memorandum, with details expected to be released within 24 to 48 hours. The Pentagon's military posture includes approximately 50,000 troops in the region, one of the largest concentrations in over two decades.
Officials emphasized that any sanctions relief or concessions would be tied to verification of Iranian compliance, rather than promises alone. The U.S. maintains that no frozen Iranian assets have been released, while Iranian officials claim the framework allows for the release of about $24 billion in frozen funds.
The agreement aims to extend a ceasefire, establish a 60-day negotiating window, and facilitate the reopening of the Strait of Hormuz, a critical waterway for global oil and gas shipments. While the memorandum allows for the Strait to remain open toll-free during negotiations, the return to normal shipping levels may take time. The deal outlines a potential path for Iran to receive sanctions relief in exchange for verifiable actions to prevent the rebuilding of its nuclear program and reduce support for terrorism.
Following the announcement, oil prices declined as traders anticipated a return to normal operations in the Strait, impacting global energy markets.