President Donald Trump arrived in Evian-les-Bains, France, on Monday for the G7 summit with a focus on a newly announced agreement aimed at ending the ongoing U.S. war with Iran. Trump characterized the emerging deal as a major step toward global security and a potential turning point in the strained relations between Washington and Tehran. He expressed optimism, highlighting a recent drop in oil prices and a surge in the stock market as early indicators of positive outcomes from the agreement.

The conflict with Iran, now 15 weeks old, has strained ties between the United States and key European allies, including French President Emmanuel Macron, British Prime Minister Keir Starmer, German Chancellor Friedrich Merz, and Italian Prime Minister Giorgia Meloni. These leaders have criticized Trump for not consulting them before the decision to engage militarily with Iran. However, the prospect of a formalized agreement—expected to be signed on Friday—could alter the dynamic of the three-day summit. Macron, who is hosting the meeting, congratulated Trump on Monday for reaching a path toward peace, calling it “a very important matter for peace of the whole world.”

Details of the memorandum of understanding are still being negotiated and are expected to be released publicly after the signature later this week. Senior U.S. officials indicated that the deal provides for the immediate reopening of the Strait of Hormuz and the lifting of the U.S. naval blockade, though they cautioned that it may take weeks for commercial traffic to return to full capacity. Concerns over mines in the strait have been a significant factor in the disruption of tanker traffic, and both Britain and France have expressed willingness to assist with mine clearance once the conflict deescalates. Macron noted that France could deploy mine-clearing vessels to the region within days.

The agreement reportedly includes provisions for releasing some of Iran’s frozen assets, sanctions relief, and establishing a $300 billion fund aimed at rebuilding Iran, contingent on Iran meeting specific benchmarks set by the White House. However, several key aspects remain unclear, including the mechanisms for verification of Iran’s compliance, oversight of its nuclear program, and the handling of highly enriched uranium reportedly hidden at damaged nuclear sites.

Domestically and internationally, the deal has received mixed reactions. Some Democrats and hawkish critics argue that Trump has failed to explain how this new agreement will avoid the perceived shortcomings of the 2015 nuclear deal—the Joint Comprehensive Plan of Action (JCPOA)—which Trump withdrew from in 2018. Senator Mark Warner expressed concerns over the lack of multilateral oversight seen in the previous deal, while Republican Senator Lindsey Graham has raised doubts about Iran’s interpretation of the agreement and emphasized that Congress must review any final deal.

In addition to the Iran issue, trade tensions between the U.S. and European allies continue to simmer. Trump reiterated threats to impose 100% tariffs on French wine imports unless France abolishes its digital tax on American technology companies, a point of contention Macron rejected as a matter for France and the European Union to decide independently.

The summit will also include discussions on the ongoing Russia-Ukraine war, with Macron inviting Ukrainian President Volodymyr Zelenskyy for talks on Tuesday. Trump, who has held separate calls with both Zelenskyy and Russian President Vladimir Putin, emphasized the need to end hostilities and indicated that the Iran deal would allow the U.S. to concentrate more fully on diplomatic efforts to halt the conflict in Ukraine. Zelenskyy had proposed a meeting involving Putin, Trump, and European leaders at the G7 summit, but no response was received from Moscow. The Kremlin has expressed opposition to the International Criminal Court, which has issued a warrant for Putin’s arrest over alleged war crimes—a factor complicating the prospect of any such meeting.