U.S., Iran Reach Peace Deal. But Israel Won’t Withdraw From Lebanon.

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Luke Vargas (0:33)

Global markets rise after the US and Iran agreed to an interim peace deal to be signed later this week. Plus, Anthropic races to resolve new AI export restrictions imposed by the Trump administration. And the UK unveils a social media ban for kids under 16

Keir Starmer (0:51)

I am not prepared to compromise on the safety and happiness of our children. And that is why this ban must happen. And that is why this ban will happen.

Luke Vargas (1:02)

It's Monday, June 15th. I'm Luke Vargas for The Wall Street Journal. And here is the AM Edition of What's News. The top headlines and business stories moving your world today.

The US and Iran say they have reached an interim deal to open the Strait of Hormuz and extend a fragile ceasefire. President Trump and Pakistani mediators say the deal will officially be signed on Friday when the Strait of Hormuz is also expected to reopen, restoring global oil flows. However, Journal Middle East correspondent Benoit Faucon says more needs to be ironed out this week.

Benoit Faucon (1:40)

As far as we know, the memorandum of understanding mostly agrees on really low-level demands. For instance, the cession of fighting on both sides, the fact that Iran would not have a nuclear weapon, the fact that both sides will respect each other's territorial integrity, will interfere in their domestic affairs, and most crucially, that Iran reopens the Strait of Hormuz and the US stop blockading ports. But beyond that, the most fundamental points, which is what we do about nuclear program, the sanctions, the release of cash, and even who controls Hormuz, are not resolved.

Luke Vargas (2:15)

Meanwhile, Pakistan's prime minister has said the ceasefire would also include the end of Israel's military action in Lebanon, which Benoit says was key to Iran agreeing to move forward with talks on a more permanent ceasefire.

Benoit Faucon (2:28)

The fact that the US told Israel to stop attacks on Lebanon, that was what Iran needed as a piece of comfort to show Hezbollah they are part of that deal, that the cessation of fighting is not just in the Persian Gulf, but it's also in Lebanon.

And that's where you really have a problem, because if you have talks that has disrupted by potential return of war in Lebanon, that's going to be a problem for the overall bigger negotiation. The second one is that Iran claims that Israel will pull out of Lebanon, and Israel says that's not the case at all. So you really have a fundamental point where they're not on the same page.

Luke Vargas (3:06)

Those hurdles are likely to dominate talks this week, with Israel's defense minister saying this morning that Israel will not withdraw from land it seized in Lebanon. Trump's peace deal will also face scrutiny when he joins G7 leaders meeting in the French Alps today with many US allies critical of the conflict and its impact on global energy prices. That said, oil prices have dropped on news of the deal, with WTI now trading around $80 a barrel and natural gas prices also tumbling. While analysts note this is the first time they've seen real prospects for the Strait of Hormuz to reopen, oil markets are expected to remain tight while the industry looks to restore shipping lanes, damaged infrastructure, and crude inventories.

President Trump marked his 80th birthday last night with a series of UFC cage matches on the White House's South Lawn. The military was closely integrated into the programming, with troops in attendance, the US. Marine Band performing throughout the night, and the Navy's Blue Angels and Air Force Thunderbirds conducting a joint flyover during the national anthem.

While Secretary of State Marco Rubio described the event as a gift to the American people, it was exclusively streamed on Paramount Plus, which requires a monthly subscription. White House reporter Alex Leary.

Alex Leary (4:30)

Paramount Plus exclusively aired this event. Paramount has a $7.7 billion deal with UFC.

And Paramount just won a major victory just days ago. The Justice Department signed off on its takeover bid for Warner Brothers Discovery, a massive entertainment deal in the works. And CEO David Ellison was there fresh off that victory. One of the other really striking things was how vivid the corporate tie-in was. UFC said it spent about $60 million on this event, half of which is going to get back to advertising and corporate sponsorships.