Senator Ted Cruz sharply criticized the Trump administration’s recently announced Iran agreement, warning Friday that it could enable the Iranian regime to fund terrorism and increase threats to American lives. Speaking on his podcast, Cruz condemned the deal as potentially providing Iran with up to $300 billion, which he said would empower “theocratic lunatics who want to murder us.”

The deal, formalized as a Memorandum of Understanding (MOU) between the United States and Iran, aims to establish a framework for lifting sanctions and supporting the reconstruction and economic development of the Islamic Republic after months of U.S. military strikes. However, Cruz and other Republican lawmakers have expressed deep skepticism about the arrangement, particularly its provisions for financial aid to Iran.

Cruz highlighted a section of the MOU promising that the United States, together with regional partners, would develop a definitive plan involving at least $300 billion for Iran’s rebuilding, with the implementation details to be finalized within 60 days. The agreement also states that the U.S. would grant all necessary licenses and permissions for related financial transactions. Cruz argued that this language leaves open the possibility of using taxpayer funds and could funnel billions directly or indirectly to Iran. He warned the deal might provide Iran with up to $30 billion immediately and suggested the money could be used to fund terrorism or Iran’s pursuit of nuclear weapons.

The senator also criticized the deal for lacking concrete mechanisms to prevent Iran from developing a nuclear arsenal, which he described as a threat capable of causing mass casualties in the United States. He further noted concerns that the agreement could permit Iran to impose tolls on ships passing through the strategically vital Strait of Hormuz.

While Cruz was critical of the deal, he softened his tone toward President Donald Trump, attributing the agreement to “poor advice” and expressing hope that the administration would reconsider its approach.

Trump and his administration have disputed the claims that the United States would provide direct cash payments to Iran. President Trump stated at the recent G7 summit in France that the U.S. would not invest any funds in Iran’s redevelopment and emphasized U.S. rights to take military action if deemed necessary. Donald Trump Jr. also dismissed Cruz’s statements as false, accusing the senator of spreading misinformation that undermines the president’s efforts to pursue peace.

Cruz contrasted the current deal with the 2015 nuclear agreement negotiated by the Obama administration. While former Obama officials have defended that earlier deal as effective in curbing Iran’s nuclear program through inspections and restrictions, Cruz rejected comparisons, arguing that President Trump’s administration took a “heroic” military stance by targeting and destroying Iran’s navy, air force, ballistic missile capabilities, and associated facilities. Cruz questioned the rationale of rebuilding these assets, likening the proposed financial support to a “Marshall Plan” for Iran, which he said is contrary to American interests.

The Iran agreement has become a flashpoint within the Republican Party, particularly as potential 2028 presidential contenders, including Cruz and Vice President JD Vance—the latter publicly defending the deal—position themselves in the ongoing intra-party debate. The controversy underscores the challenges facing the administration as it navigates foreign policy in the Middle East amid domestic political calculations.