US President Donald Trump said on Wednesday that the memorandum of understanding on Iran was not final, and that he could resume a bombing campaign if he did not like it.
"It's a memorandum of understanding. And if I don't like it, we'll go back to shooting at them, dropping bombs on their head. If I don't like it, if they don't behave, we'll go right back to dropping bombs right smack in the middle of their head, OK?" said Trump, at the G7 summit in France.
Trump said the Iran memorandum of understanding did not include immediate sanctions relief for Iran, while adding he would talk about this matter later.
Iran will immediately take steps to reopen the Strait of Hormuz once a tentative deal with the US to end the war is signed and will be allowed to sell its oil without restrictions, according to leaked copies of an interim agreement that officials say broadly matches the document.
The accord is due to be formally signed in a ceremony in Switzerland on Friday.
The US agreement to immediately allow Iran to sell its oil freely and the offer to eventually lift all sanctions represent major concessions that outstrip the terms of Iran's 2015 nuclear deal with world powers, which US President Donald Trump unilaterally withdrew America from in his first term, declaring it the "worst deal ever."
This new accord likely will draw intense criticism in Washington -- and appears to be a major setback for Israeli Prime Minister Benjamin Netanyahu, who launched the war with Trump on Feb. 28.
The deal calls for an immediate end to all fighting in Lebanon between Israel and the Iranian-backed militia Hezbollah. That is one of the most delicate parts of the agreement because Israel has maintained it will continue to defend itself and to occupy vast swaths of Lebanon. Iran has said it must withdraw under the deal, although the leaked versions make no mention of withdrawal.
The two sides are to start 60 days of negotiations over a final deal that the Trump administration insists will prevent Iran from ever developing a nuclear weapon. The US offers appear aimed at enticing Iran to strike an agreement.
But in the meantime, Iran appears to be getting benefits up front while making few concessions. Much of the agreement would restore the status quo before the war, including ending hostilities and reopening the strait, which is a crucial passage for the world's oil and natural gas and whose closure created a historic energy crisis.
On Tuesday, Reuters reported that a $300 billion private fund designed to trigger investment into Iran is outlined in the US-Iran framework agreement, and more than half that sum has already been committed, a source with direct knowledge of the deal said.
The fund is designed to give both sides an economic incentive to conclude a final deal, said the source, who spoke on condition of anonymity because the plan has not yet been announced as Washington and Tehran prepare to sign on Friday.
The new fund is a private investment vehicle, not a reconstruction or reparations program and will not include any government money or grants, the source said, adding that companies based in the US, the Gulf Arab states, Asia, South America and Africa have agreed to commit financing.
A senior Iranian source had earlier told Reuters that Tehran had originally sought $400 billion as compensation for war damages from the US but Washington had said it would not provide it.
The idea for the fund, which is to be named the Reconstruction and Development Fund, had then emerged.
The investment fund is entirely separate from a parallel negotiating track over the lifting of US sanctions and the release of Iranian sovereign assets frozen abroad, the source said, describing the two as distinct financial mechanisms with different purposes and timelines.
Netanyahu continues offensive in Lebanon despite Trump warning
Israeli forces launched fresh attacks in southern Lebanon on Wednesday, according to state media reports, despite renewed criticism from US President Donald Trump over Israel's military operations in the country.
Lebanon's National News Agency (NNA) reported that Israeli warplanes targeted the Nabatieh al-Fawqa region as well as areas on the outskirts of nearby Kfar Tebnit. There was no immediate comment from the Israeli military, which has previously stated that its operations are aimed at the Iran-backed Hezbollah movement.
"Without the US, there would be no Israel. Without me, there would be no Israel because no other President was willing to do what I did," Trump said. "I have had a great relationship with Bibi. Now Bibi has to be more responsible with respect to Lebanon."