President Donald Trump said Iran will not receive any U.S. funds under a preliminary agreement to end the war with Iran [1].
The deal aims to resolve the ongoing conflict by reopening the Strait of Hormuz and lifting the U.S. naval blockade on Iranian ports [2, 3]. If successful, the agreement would stabilize one of the world's most critical maritime chokepoints and reduce the risk of further escalation in the region.
Trump made the announcement June 16, 2026 [1], during the second day of the G7 summit in Italy [1]. While the president said that an initial agreement is already in place [4], the full text of the deal has not been released to the public.
"Iran will not receive any U.S. funds under this agreement," Trump said [1].
Despite the president's optimism, some officials and analysts remain cautious. CBS News correspondent Nancy Cordes said the specifics of the arrangement are unknown because the text of the deal has not been seen [1]. Additionally, reports suggest that Iran has signaled no deal will be signed by the Sunday timeline set by the president [4].
There are also contradictions regarding the immediate status of military operations. While the preliminary agreement is expected to lift the U.S. naval blockade [1], other reports indicate the blockade will remain in place until at least Friday, June 19, 2026 [5].
Iranian Foreign Minister Hossein Amir-Abdollahian said negotiations will start immediately after the preliminary agreement is signed [3]. The transition from a preliminary framework to a formal treaty remains the primary hurdle for both nations.
“"Iran will not receive any U.S. funds under this agreement."”
The announcement reflects a high-stakes diplomatic attempt to end a naval and territorial conflict without providing direct financial incentives to Tehran. However, the discrepancy between the president's timeline and Iranian signals, coupled with the continuing naval blockade, suggests that the 'preliminary' nature of the deal may be fragile and subject to further negotiation.
