The United Nations nuclear watchdog has welcomed the interim peace agreement signed between the United States and Iran, describing it as a critical opening for technical negotiations aimed at stabilising nuclear oversight and reducing tensions after months of conflict that destabilised the Middle East.

The agreement extends an earlier ceasefire by 60 days and is intended to create space for detailed negotiations toward a more permanent settlement.

It also includes provisions affecting Lebanon and broader regional security arrangements, following a war that has killed more than 7,000 people and disrupted global energy markets.

According to Rafael Grossi, Director General of the International Atomic Energy Agency (IAEA), “it is good that the memorandum is there. Now the technical work starts.”

“Now it is for us to sit down with our American and Iranian colleagues and start formulating concrete steps that will have to be taken.”
Rafael Grossi,

The 14-point agreement was signed digitally by US President Donald Trump and Iranian President Masoud Pezeshkian.

Iranian authorities confirmed that the deal entered into force immediately upon signature, marking the beginning of a two-month negotiation window designed to convert the ceasefire into a comprehensive settlement.

The agreement comes after months of escalating confrontation between the United States, Israel and Iran, which erupted into open conflict in late February. The war rapidly expanded into a regional crisis involving missile and drone strikes across multiple countries, disruption of maritime trade routes, and heightened fears over global energy stability.

Central to the agreement is Iran’s commitment to dilute its stockpile of enriched uranium under international supervision, alongside the gradual easing of economic restrictions imposed by Washington.

The deal also includes provisions for the eventual establishment of a $300 billion reconstruction fund, supported by regional partners, aimed at rebuilding infrastructure damaged during the conflict.

The Strait of Hormuz, one of the world’s most strategically important shipping lanes, is expected to reopen as part of the initial implementation phase. Its closure during the conflict had sent shockwaves through global energy markets, contributing to rising oil prices and renewed inflationary pressures in several developing economies.

Prime Minister Shehbaz Sharif of Pakistan, who played a mediating role in the negotiations, confirmed that the agreement will enter into force immediately.

“As a first step, Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade.”
Shehbaz Sharif

He added that technical talks would begin shortly to oversee implementation of the agreement’s provisions and ensure compliance by all parties.

Technical Negotiations Begin as Nuclear Oversight Stakes Rise

With the ceasefire now in effect, attention is turning to the technical phase of implementation, where the International Atomic Energy Agency is expected to play a decisive role in verifying compliance and ensuring transparency in Iran’s nuclear programme.

IAEA officials are preparing to engage directly with both Iranian and American counterparts to establish mechanisms for monitoring uranium dilution, inspection access, and long-term safeguards designed to prevent escalation of nuclear risks.

Under the terms of the agreement, Iran is expected to reduce its enriched uranium stockpile through processes such as on-site down-blending under IAEA supervision. This measure is intended to reduce immediate proliferation risks while allowing space for broader negotiations on the future structure of Iran’s nuclear programme.

The agreement also links nuclear compliance to phased economic relief, including the easing of sanctions that have significantly constrained Iran’s economy. However, US officials have clarified that Washington itself will not be directly responsible for financing reconstruction commitments, despite the proposed creation of a multibillion-dollar regional fund.

The war that preceded the agreement has left deep geopolitical and humanitarian consequences across the Middle East. Triggered in February, the conflict quickly expanded beyond bilateral hostilities, drawing in allied groups and neighbouring states, while intensifying instability in Lebanon and other parts of the region.

Hezbollah, the Lebanese Shiite movement, described the agreement as a strategic outcome favourable to Iran, reflecting Tehran’s ability to secure concessions despite sustained military pressure.

The reopening of the Strait of Hormuz is expected to be one of the most immediate economic consequences of the deal. The waterway handles a significant share of global oil exports, and its closure during the conflict contributed to sharp volatility in global energy prices.

While the agreement has been described by mediators as a breakthrough, it remains a temporary arrangement designed to prevent further escalation while longer-term negotiations continue.

Despite the diplomatic progress, tensions remain high. US President Donald Trump has maintained a hardline stance, warning that military action remains an option should Iran fail to comply with the terms of the agreement.