US-Iran Memorandum of Understanding Unveiled
US officials have released the complete text of the US-Iran Memorandum of Understanding (MoU), which aims to extend the ceasefire, reopen the Strait of Hormuz, and ultimately resolve the conflict between the two nations nearly four months after hostilities began.
The Trump administration characterizes the 14-point agreement as "performance-based," meaning Iran will benefit only if it fulfills its commitments.
At the G7 summit in Evian-les-Bains, France, President Donald Trump stated that the deal would be formally signed "shortly"—potentially as early as Thursday.
Below is a detailed overview of the key elements of the agreement.
Point 1: An End to Conflict 'on All Fronts'
The opening paragraph of the agreement declares that the US, Iran, and their allies will implement an "immediate and permanent" cessation of military operations on "all fronts," explicitly including Lebanon.
President Trump has expressed growing concern that Israeli military actions against Hezbollah could jeopardize the agreement with Iran.
Tehran has consistently maintained that Lebanon should be included in the truce.
A spokesperson for the Iranian Ministry of Foreign Affairs stated on Wednesday that any continuation of Israeli military operations in Lebanon would represent a "violation of the understanding" and that "necessary measures will be taken."
The agreement specifies that "from now on," neither party will initiate military actions or threaten the other and that both will ensure "the territorial integrity and sovereignty" of Lebanon.
The document asserts that the final agreement will result in the permanent "termination" of the conflict.
Israel's response to this provision remains uncertain.
Point 2: Respect for 'Internal Affairs'
The agreement text, read verbatim to reporters during a call with US officials, states that the US and Iran will "respect each other's sovereignty and territorial integrity" and refrain from interfering in each other's internal matters.
This clause is expected to be negatively received by Iranian dissident groups.
Earlier in the year, President Trump had promised Iranian protesters that "help is on the way" amid widespread anti-government demonstrations across Iranian cities.
Point 3: An Extendable 60-Day Timeline
The third point commits both the US and Iran to negotiate and finalize a comprehensive deal within a "maximum" of 60 days, with the possibility of extension by mutual agreement.
This 60-day period is anticipated to commence when the leaders of both countries officially sign the MoU, with a signing ceremony planned in Geneva later this week.
Esmaeil Baqaei, spokesman for the Iranian Ministry of Foreign Affairs, remarked:
"So far, our plans for the Geneva meeting have not changed."
"Regarding the signing of the memorandum of understanding, one idea is that it be done by the presidents of the two countries, which is currently under review."
The ministry also confirmed the commitment to reach a "final understanding" within 60 days.
Point 4: US to End Blockade
Upon signing the MoU, the US will initiate the removal of its naval blockade and eliminate "any disturbances or impediments" imposed on Iranian ports, as outlined in the fourth point.
The blockade is to be completely lifted within 30 days, according to the agreement and statements from the Iranian Ministry of Foreign Affairs. During this period, the number of vessels permitted by the US to access Iranian ports will correspond proportionally to the traffic restored by Iran in the Strait of Hormuz.
Within 30 days of the final deal's signing, the US has pledged to withdraw American forces from the "proximity of Iran."
In practical terms, this means the US military will revert to the posture and assets it maintained prior to the outbreak of hostilities on 28 February.
Point 5: Strait of Hormuz
The agreement specifies that upon signing the MoU, Iran will "make arrangements using its best efforts" to ensure the safe passage of commercial vessels through the Strait of Hormuz without imposing any charges.
This objective has been a central US demand since the conflict began and the closure of the Strait caused a spike in global oil prices.
The document states that maritime traffic will resume "immediately," considering the need to clear technical and military "obstacles" and conduct de-mining operations.
US officials emphasized during a briefing that vessels will not be charged for transit through the Strait.
Looking ahead, the document notes that Iran will collaborate with Oman and other Gulf states to establish a "broader" agreement governing the management of the Strait of Hormuz.
US officials anticipate that Iran will assert its rights "aggressively," but believe Gulf states would "never" accept a future tolling system, according to one official.
Point 6: Money for Iran Reconstruction
The sixth point outlines that the US and regional partners will develop a "definitive, mutually agreed plan" valued at a minimum of $300 billion (£224 billion) to support reconstruction and economic development in Iran.
The final framework will be agreed upon within 60 days following the final deal, with all licenses, waivers, and permissions granted by the US.
However, this does not imply direct financial contributions from the US.
One official clarified that the US is not obligated to provide "a cent of money" to Iran or contribute to the fund.
As an example, the official explained that if Iran "behaves," Emirati authorities could construct a power plant in Iran with US approval.
President Trump and other officials have emphasized to the US public that the US will not pay Iran directly, contrasting this approach with the 2015 nuclear agreement under the Obama administration.
Point 7: Sanctions to End
The US will terminate all economic sanctions against Iran, including those embedded in UN Security Council resolutions and those unilaterally imposed by the US.
The timeline for lifting sanctions remains unspecified.
The document indicates that the schedule will be determined as part of the final deal, with both parties acknowledging their intent to "immediately" address the matter in subsequent negotiations.
Iran has suffered significantly under sanctions, and the US campaign, Operation Economic Fury, has aimed to sever Tehran's access to the global financial system.
Point 8: No Nuclear Weapons
Iran has agreed not to acquire or develop nuclear weapons, and both parties have consented to address the enriched uranium Tehran currently possesses.
The method for managing this material remains undefined. The document states that the mechanism "will be mutually agreed upon" in future talks but will, at minimum, involve "downblending" in place under the supervision of the International Atomic Energy Agency (IAEA).
A senior US official described this as a "minimum standard" and a "major win" for the US.
President Trump has stated that preventing Iran from obtaining a nuclear weapon was "99%" of his objective in launching Operation Epic Fury earlier this year.
Because the US describes the deal as performance-based, sanctions relief outlined in point 7 is contingent upon Iran's compliance with point 8.
Points 9 & 10: A 'Status Quo'
The subsequent two points specify that the US and Iran agree to maintain a "status quo" regarding Iran's nuclear program until the enriched uranium issue is resolved.
Practically, this means the US will not impose new sanctions and will issue waivers for the export of oil, petroleum products, and related services such as banking transactions and transportation during this interim period.
Point 11: Frozen Funds
This point has been a significant obstacle in negotiations.
Iran has long demanded the release of its frozen assets as an economic lifeline.
The eleventh point states that the US "undertakes to make fully available frozen or restricted funds" once the MoU is signed, with procedures to be agreed upon during negotiations.
A US official told reporters on Wednesday that some assets will be released while post-MoU talks continue, rewarding Iran for compliance with aspects of the agreement, such as beginning to address its highly enriched uranium.
Points 12-14: Monitoring and Final Negotiations
The final points outline the logistics for implementing the deal.
They specify that the US and Iran will establish a "mechanism" to monitor the implementation of the MoU and compliance with the future deal, though details remain unclear.
Following the MoU's signing and commencement of implementation, the US and Iran will initiate negotiations for a final agreement.
Finally, the MoU states that the final deal will be endorsed by a binding UN Security Council resolution.
