Middle East crisis live: Tehran says it will charge ships in strait of Hormuz after 60 days; US-Iran presidents sign peace deal

Pakistani prime minister Shehbaz Sharif said earlier in the day that the agreement between the US and Iran agreement was taking “immediate effect” after being signed by both sides.

He said on social media that “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”.

Sharif, who helped mediate the memorandum of understanding, also reportedly said there would still be a formal signing ceremony in Switzerland on Friday to “commemorate this landmark event and commence with the technical level talks”.

Welcome to our continuing live coverage of the crisis in the Middle East.

The US and Iran have released the text of an interim agreement their presidents have signed to end their war, but Donald Trump has threatening to resume attacks and kill Iranian officials if Tehran fails to honour its commitments.

Trump, attending a G7 summit with other leaders in France, also withdrew at least one of his stated rationales for initially attacking Iran, saying it would ⁠be “unfair” for Tehran not to have ballistic missiles, although he previously ⁠vowed to obliterate them.

“We’re going to bomb the hell out ​of them if they violate the agreement,” Trump said of Iran at a press conference. “I don’t want them to. I want them to honour the agreement.”

The 14-point memorandum of understanding extends an April ceasefire by another 60 days, including in Lebanon, to allow the two sides to negotiate a final truce over the coming 60 days.

The agreement also includes the full resumption of maritime traffic “with no charge” in the strait of Hormuz, the lifting of a US blockade of Iranian ports, the waiving of US sanctions on Iran, the unfreezing of its assets, and a $300bn investment fund for Iran’s post-war reconstruction.

However, lead Iranian negotiator Mohammad Bagher Ghalibaf said the Hormuz strait “will not return to prewar conditions” and that Iran would charge ships to transit the waterway after the 60-day toll-free period stipulated in the agreement. Trump has previously said he will not accept tolls being imposed for crossing the vital energy route.

In other developments:

• Iran’s leaders did not address the new threats while celebrating the deal, with Ghalibaf saying on state television: “Everything we sought to achieve through military action, we obtained several times over through negotiation; ⁠it was not even comparable.” The deal included the unfreezing of billions of dollars in Iranian assets, he claimed.

• Trump and Iranian president Masoud Pezeshkian both digitally signed the memorandum of understanding in English and Farsi, ‌US and Iranian officials said. Iran’s foreign ministry said the agreement was already in effect as of Wednesday, as did mediator Pakistan.

• Under the agreement Iran also undertakes not to build nuclear weapons, reaffirming a vow it had made for decades. It also agreed to an on-site “down-blending” of its stockpile of enriched uranium.

• Trump signed just before a grand dinner with French president Emmanuel Macron at the Palace of Versailles, the site of the signing of the treaty that formally ended the first world war. G7 leaders hailed the agreement at their summit in France. The US has said a formal signing ceremony for the deal is due to be held in Switzerland on Friday.

• Oil prices fell again on Wednesday on prospects for the reopening of the Hormuz strait, with Brent crude futures below $80 – their lowest level since the war’s start – but later regaining more than 1% after Trump threatened renewed violence. After the signing US crude dipped 1.25% to $75.83 a barrel and Brent crude was down 1.4% to $78.41 a barrel.

• Donald Trump entered the war with maximalist goals and exits it with a pragmatic decision to end the conflict despite the political cost, Andrew Roth writes in this analysis.
  With news agencies