Overview

The United States released the full text of US-Iran memorandum of understanding (MOU) following weeks of negotiations, potentially ending the conflict over Iran’s nuclear weapons.

Washington and Tehran have agreed in principle to an MOU aimed at immediately ending military hostilities and negotiating a comprehensive “final deal” within a maximum of 60 days (extendable by mutual consent).

The agreement covers ceasefire, sanctions relief, naval issues in the Strait of Hormuz, nuclear commitments, economic reconstruction, and future compliance mechanisms.

Key points by category:

1. Immediate ceasefire & security (Paragraph 1-2, 9)

• Immediate and permanent termination of all military operations on all fronts, including Lebanon.
• No future initiation of war, military operations, or threats of force between the two sides and their allies.
• Respect for each other’s sovereignty, territorial integrity, and non-interference in internal affairs.
• Both sides agree to maintain the current status quo pending the final deal (Iran freezes its nuclear program advances; US imposes no new sanctions or additional forces).

2. Strait of Hormuz, naval & maritime arrangements (Paragraph 4-5)

• US to immediately begin lifting its naval blockade, fully ending it within 30 days.
• Iran to facilitate safe, free passage of commercial vessels through the Strait of Hormuz for 60 days (no charges), with full operations resuming within 30 days after de-mining and technical clearance.
• Iran will engage Oman and other Gulf states on long-term administration of the Strait in line with international law.

3. Sanctions relief & economic measures (Paragraph 7, 10-11)

• US commits to terminating all sanctions (UNSC, IAEA, unilateral primary & secondary) on an agreed schedule as part of the final deal.
• Immediate waivers for Iranian oil exports, petroleum products, and related services (banking, insurance, shipping).
• Release and full usability of frozen Iranian funds/assets, with procedures to be mutually agreed.

4. Reconstruction & economic support (Paragraph 6)

• US, with regional partners, to develop a plan of at least $300 billion for Iran’s reconstruction and economic development.
• Implementation mechanism to be finalized in the final deal.

5. Nuclear issues (Paragraph 8)

• Iran reaffirms it will not procure or develop nuclear weapons.
• Stockpiled enriched material to be addressed (minimum: down-blending on site under IAEA supervision).
• Future enrichment levels and other nuclear matters to be negotiated in the final deal.

6. Timeline & process (Paragraph 3, 12-14)

• Final comprehensive deal to be negotiated and achieved within 60 days (extendable).
• Executive monitoring mechanism to oversee implementation.
• Initial implementation of ceasefire, blockade lift, oil waivers, and funds release will allow negotiations on remaining issues.
• The final deal will be endorsed by a binding UN Security Council resolution.

Key point:

This MOU functions as a short-term truce and confidence-building framework that trades immediate de-escalation and sanctions/oil relief for Iran in exchange for a ceasefire (especially in Lebanon), nuclear restraints, and a pathway to a larger normalisation/reconstruction agreement.

GN

The signing of the US-Iran memorandum of understanding to end the Middle East war means Tehran will reopen the Strait of Hormuz “instantly” and the American blockade of Iranian ports will end “immediately”, Pakistan’s Prime Minister Shehbaz Sharif said on Thursday.

The memorandum “shall enter into force with immediate effect and as a first step, Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade”, Sharif wrote on X.

He also confirmed that Pakistan, with Qatari support, would host a ceremony in Switzerland on Friday to “commemorate this landmark event and commence with the technical level talks”.

I am honoured to announce that the historic ‘Islamabad Memorandum of Understanding’ has been electronically signed today between the United States of America and the Islamic Republic of Iran. The Memorandum has been signed by honourable Presidents of both the countries and also…

— Shehbaz Sharif (@CMShehbaz) June 18, 2026

GN

 Details began to emerge on Tuesday of the U.S. and Iran’s interim agreement to end the war in the Middle East, with U.S. President Donald Trump saying it will rule out a nuclear weapon for Tehran and a U.S. official ​saying it allows Iran to sell oil upon signing.

The memorandum of understanding signed this week, though yet to be made public, extends a tenuous ceasefire announced in April by another 60 days to allow the ‌warring countries to negotiate a permanent truce.

Under the deal, the U.S. will end its blockade of Iran’s ports while Tehran will restore the passage of oil tankers and other maritime traffic through the Strait of Hormuz, which it has effectively blocked since the U.S. and Israel launched strikes on February 28.

The U.S. president said the agreement states clearly that Tehran will not have a nuclear weapon and the full text would be made public in a formal setting in a few days.

Iran has long said that it will not develop a nuclear weapon and that its nuclear program is ​for peaceful purposes only.

Trump has given shifting rationales for attacking Iran, but appears to have achieved little of what he has said he wanted: Iran’s theocratic government remains in place, its ballistic missile program has ​not been dismantled, and it has not ended its support for anti-Israel militias like Hezbollah.

The accord exposes Trump, a Republican, to criticism from within his own party ahead of midterm elections in ⁠November. Meanwhile Iran’s leaders could face renewed protests if they fail to ease economic pressures after a destructive war.

Israel has not directly participated in the negotiations and has distanced itself from both the April ceasefire and the latest U.S.-Iran agreement, adding uncertainty to ​whether the new ceasefire will hold.

The war has affected most countries in the region, killing more than 7,000 people, mostly in Iran and Lebanon, which Israel invaded in March after Iran-allied Hezbollah joined the fighting.

U.S. Vice President JD Vance ​said that the agreement included Israel and Lebanon, contradicting Israeli Prime Minister Benjamin Netanyahu, who said on Monday that Israel is not bound by it, and will not withdraw from southern Lebanon. A Hezbollah spokesperson told Reuters the group believed Iran would not agree to a permanent truce if the Israeli occupation was not ended.

Iran’s military command, Khatam al-Anbiya Central Headquarters, warned that Israel should expect a hard response if it did not stop its attacks on southern Lebanon.

A senior U.S. official said the agreement allows Iran to immediately begin selling oil and fuel, and ​included banking, transportation and insurance services to facilitate the sales.

U.S. and Iranian officials say the deal could eventually deliver substantial economic benefits to Iran by lifting sanctions and unfreezing foreign assets. It could also set up a $300 billion reconstruction fund, ​paid for by neighbouring Gulf states that host U.S. military bases and were hit by Iranian attacks during the war, if Iran complies with other terms.

DIFFICULT TALKS PENDING

In the coming 60 days, negotiators will return to difficult issues like the future of Iran’s nuclear program, which Tehran was discussing with ‌Trump officials ⁠in February until those negotiations were interrupted by the U.S. decision to launch the war.

Two other issues that Trump and Netanyahu used to justify the war appear not to be on the agenda: ending Iran’s support for regional armed militia groups and curbing its missile program.

Trump has publicly criticized Netanyahu and expressed frustration at Israel’s military campaign, saying on Tuesday he was “not happy” with the way Israel had handled itself.

“Iran wants to get it done,” Trump told reporters about the next phase of negotiations with Iran, a sentiment he has repeated since the war’s earliest days. “They have to get back to business, and the relationship is now normalized, so I think it’s going to go pretty quickly.” Earlier he described the deal as “a wall to a nuclear weapon” for Iran.

​Iran signed an agreement to sharply curtail its uranium enrichment ​efforts in 2015 with the U.S. and other countries, ⁠but the agreement fell apart after Trump unilaterally withdrew the U.S. in his first term. That led to Iran creating a stockpile of highly enriched uranium that Trump says he wants removed or destroyed.

Speaking at the G7 meetings in France, Trump said he liked the idea of sending the Iran agreement to lawmakers in the U.S. Congress for review after some of his fellow Republicans complained ​they were being left in the dark. Trump has faced criticism from some lawmakers for not getting authorization from Congress for the war, which is broadly unpopular among Americans.

Oil prices ​slid more than 2% to new ⁠three-month lows on Tuesday, a day after tumbling nearly 5% following news of the deal, though industry officials say Middle East oil and gas output will take months to fully recover.

CAUTION OVER SHIPPING

Both sides say the Strait of Hormuz, which normally carries about one-fifth of the world’s trade in oil and liquefied natural gas, will be open from Friday, but shipping companies say they will wait to see if peace holds.

On Tuesday, Iranian state television reported operations to lift its maritime blockade, while stressing that vessels must still coordinate with Iran’s ⁠Revolutionary Guards.

The U.S. ​said the strait would be open toll-free for 60 days and it would expect that provision to be part of a final agreement. Iran ​has suggested it will retain control with Oman over the strait.

THOMSON REUTERS