President Donald Trump announced a memorandum of understanding for a peace deal with Iran on May 24, 2026 [1, 2].

The agreement comes amid heightened tensions in the Middle East and follows reported clashes involving Israel. The deal's terms specifically exclude any financial payouts to the Iranian government, signaling a strategy of economic pressure.

Trump said on his True Social platform that the U.S. will wait for a 60-day [1] negotiation window to conclude before taking further action. "Iran will receive not a single cent under the agreement; we will wait the full 60 days of negotiations before any further steps," Trump said [1].

The announcement coincided with conflicting reports regarding the Strait of Hormuz. Trump said the U.S. had reached the memorandum and would open the strait as soon as possible [2]. However, other reports indicated the strait had been closed again due to Iranian actions in response to Israel [1].

White House officials characterized the deal as a victory for U.S. diplomacy. A White House Press Secretary said the United States did not strike a deal out of desperation — it is Iran that feels desperation [1].

The administration maintains that the 60-day [1] period is a necessary step to finalize the terms of the memorandum. Trump said that Iran had blocked the Hormuz passage as retaliation for the clashes with Israel [1, 2].

“"Iran will receive not a single cent under the agreement."”

The absence of monetary incentives in this memorandum suggests the U.S. is leveraging Iranian economic vulnerability to secure maritime stability. By tying the reopening of the Strait of Hormuz — a critical global oil chokepoint — to a strict negotiation timeline without financial rewards, the administration is attempting to shift the diplomatic leverage in its favor.