President Donald Trump signed on Wednesday the memorandum of understanding with Iran to cease hostilities and begin nuclear negotiations.
The White House published footage of Trump signing the document while in Versailles, where officials held a dinner to cap off the G7 summit.
White House Chief of Staff Susie Wiles said in a social media publication that the signing allowed "the members and other participates see 'America First' in action."
"Not America Only, America First. The trip was capped off with a beautiful dinner and birthday celebration for President Trump at Versailles. This was truly spectacular - particularly after his blistering schedule of bilateral and other meetings and working sessions. Nobody works harder," the publication adds.
"President Trump signed the MOU with Iranians while he was at dinner. While the next 60 days will present challenges as important details are worked out, signing was a great step forward for America and, indeed, the world."
Axios detailed that one of the goals of the expedited signing is accelerating the reopening of the Hormuz Strait.
Trump emphasized the need to restart oil flows when justifying his decision to sign the document, appearing to say that reserves would have ran out in for weeks had the blockades continued.
Trump said "there are reserves all over the world, and we would really run out, and there'll be a time when you wouldn't be able to get it." He added that such a scenario would have been "bedlam."
Several analysts were warning of declining reserves, saying oil prices could skyrocket if they reached certain critical levels and there was no end to the blocking of the Strait of Hormuz in sight.
Energy markets have been rocked by the conflict despite the agreement. The International Energy Agency (IEA) has sharply downgraded its outlook for global oil demand this year after the shock.
In its latest Oil Market Report, released Wednesday, the Paris-based agency said global oil demand growth has weakened substantially from the optimistic forecasts it published at the start of the year.
The IEA has repeatedly warned that higher crude prices and transportation disruptions are suppressing fuel consumption, particularly in transportation and industrial sectors. Despite weaker demand, the agency believes supply growth remains relatively robust, creating the potential for a significant surplus once geopolitical disruptions ease.
The agency's latest long-term assessment projects global oil supply could increase far faster than demand in 2027, setting the stage for one of the largest surpluses in recent years. The agency forecasts supply growth of about 8 million bpd next year, compared with demand growth of roughly 2 million bpd.
