US and Iran sign electronic deal to suspend military operations.

Diplomats confirm the United States and Iran have signed a memorandum of understanding electronically. Foreign Ministry spokesperson Esmaeil Baghaei stated the agreement is finalized and now in effect.

Baghaei told IRNA that the text was signed by both presidents. He said it is time to test the implementation of the deal.

This Wednesday announcement suggests the US and Iran agreed to suspend military operations. It paves the way for further negotiations.

Because the agreement was signed electronically, Baghaei noted there will be no signing ceremony in Geneva, Switzerland, on Friday. Negotiating teams still plan to be in the Swiss city. A decision on an in-person meeting is expected soon, but plans are currently paused.

While the Trump White House has not issued a formal statement yet, Al Jazeera correspondent Mike Hanna reported that a spokesperson confirmed the signing earlier. Hanna warned the memo likely faces domestic backlash in the US. Trump faced right-wing pressure to take a hard line against Iran.

"There's a great deal of dissatisfaction with the memorandum of understanding, as it has been outlined to the public at this particular point, even among some Republicans who have expressed the concern that Iran is being treated leniently," Hanna said.

He emphasized the administration's position that this is not a full-fledged deal but a prelude to more negotiations. The administration is fighting hard to persuade the American public and politicians this is not a defeat.

Since February 28, the US and Israel have jointly engaged in a war against Iran. A temporary ceasefire suspended much of the intense fighting on April 8. Trump said his goal was to prevent Iran from acquiring a nuclear weapon.

Since the memo was revealed, Trump highlighted assurances that Iran will not seek a nuclear weapon. Tehran has long denied any intention of doing so.

According to a US account, the memo sets up a 60-day timeline for a final deal. It indicates the US will rally regional partners to create $300 billion for Iran's reconstruction. US sanctions would work towards lifting restrictions, and the country would issue waivers for Iranian fuel exports.

Iran has touted these terms as a victory. On Wednesday, chief negotiator Mohammad Bagher Ghalibaf told Fars that the US failed to achieve its goals.

"The agreement is a record of US failure," Ghalibaf said. "People will see it and judge."

He also explained the Strait of Hormuz would not return to pre-war conditions after the 60-day period for negotiations.

Iran is preparing to monetize access to the Strait of Hormuz, a move that threatens to shatter previous trade guarantees. Ghalibaf, speaking with unambiguous resolve, declared that the waterway will never revert to its former status. "I emphasise again that the Strait of Hormuz will never return to the previous conditions," he stated. He went further, asserting Iran's sovereign right to the channel and confirming that the nation will collect fees for its use. "Iran has the right to sovereignty over the Strait of Hormuz, and of course, we will receive a fee for services," Ghalibaf insisted.

This stance creates immediate friction with the Trump administration, which had vowed to keep the vital trade artery "permanently toll-free." The geopolitical stakes are already sky-high; since hostilities began, Iran has effectively blocked the strait, driving global prices for fuel, fertilizers, and essential commodities into the stratosphere. In retaliation, the United States imposed its own blockade on Iranian ports, though that specific measure is set to conclude under the current memorandum.

Despite these concessions, neither side treats the current memorandum of understanding as a final settlement. Both parties have stressed that the document is merely a framework, not a resolution of all disputes. "It will only become a deal, as such, at the end of the 60-day negotiation period," Hanna reported, underscoring that at least that is the current intention. Further negotiations are now required to break through the remaining impasses before any lasting agreement can be forged.