United States (U.S) President Donald Trump has formally signed a U.S.-Iran Memorandum of Understanding (MOU) aimed at ending months of conflict, reopening the critical Strait of Hormuz, and paving the way for broader negotiations.
Trump signed the U.S-Iran MOU at the Palace of Versailles in France during the G7 summit.
Also, Iranian President Masoud Pezeshkian signed the document in Tehran, with both sides describing the MOU as coming into effect immediately.
Pan-Atlantic Kompass reports that the U.S.-Iran MOU, also referred to as the “Islamabad Memorandum,” outlines immediate steps to halt military operations and restore stability in the region.
According to details released by U.S. officials and confirmed in public reporting, the agreement includes:
Immediate Ceasefire Extension: A 60-day extension of the existing ceasefire, covering all fronts including Lebanon, to allow time for final truce negotiations.
Strait of Hormuz Reopening: The vital waterway for global oil shipments will reopen without tolls or restrictions, with Iran required to remove mines and ensure safe passage. This move is expected to ease global energy market pressures.
Sanctions Relief and Asset Release: Conditional lifting of certain U.S. sanctions and the release of approximately $24 billion in frozen Iranian assets, tied to compliance.
Nuclear Commitments: Iran has pledged not to pursue or procure nuclear weapons, with IAEA monitoring. Further talks will address enrichment levels and highly enriched uranium stockpiles.
Reconstruction and Economic Framework: Provisions for a potential $300 billion reconstruction package and discussions on ballistic missiles and regional proxies.
Below is a summary of the points contained in the 800-word U.S-Iran MOU
1
The United States of America and the Islamic Republic of Iran and their allies in the current war are signing this MOU to declare the immediate and permanent termination of military operations on all fronts, including in Lebanon, and undertake from now on not to initiate any war or any military operation against each other, and to refrain from the threat or use of force against each other, and ensuring the territorial integrity and sovereignty of Lebanon. The final deal will confirm the permanent termination of the war on all fronts, including in Lebanon, as well as other provisions outlined in this paragraph.
2
The United States of America and the Islamic Republic of Iran undertake to respect each other’s sovereignty and territorial integrity and to refrain from interfering in each other’s internal affairs.
3
The United States of America and the Islamic Republic of Iran commit to negotiating and achieving a final deal within a maximum of 60 days, extendable by mutual consent.
4
Immediately upon the signing of this MOU, the United States of America will begin the removal of its naval blockade and any disturbances or impediments against the Islamic Republic of Iran, and will fully end the naval blockade within 30 days. During this period, the traffic of vessels will be in proportion to the pre-war traffic being restored by the Islamic Republic of Iran. The United States of America further undertakes to remove its forces from the proximity of the Islamic Republic of Iran within 30 days after the final deal.
5
Upon the signing of this MOU, the Islamic Republic of Iran will make arrangements using its best efforts for the safe passage of commercial vessels with no charge, for 60 days only, from the Persian Gulf to the Sea of Oman and vice versa. The traffic of commercial vessels will immediately start, and considering the need for removing the technical and military obstacles and demining by the Islamic Republic of Iran will be instated within 30 days. The Islamic Republic of Iran will conduct a dialogue with the Sultanate of Oman to define the future administration and maritime services in the Strait of Hormuz in discussion with other Persian Gulf littoral states in line with the applicable international law and the sovereign rights of coastal states of the Strait of Hormuz.
6
The United States of America undertakes with regional partners to develop a definitive, mutually agreed plan with at least USD 300 billion for the reconstruction and economic development of the Islamic Republic of Iran. The mechanism for the implementation of this plan will be finalized as part of a final deal within 60 days. All required licenses, waivers, and permissions needed for the relevant financial transactions will be granted by the United States of America.
7
The United States of America undertakes to terminate all types of sanctions against the Islamic Republic of Iran, including the United Nations Security Council resolutions.
8
The Islamic Republic of Iran reaffirms that it shall not procure or develop nuclear weapons. The United States of America and the Islamic Republic of Iran have agreed to resolve the disposition of stockpile enriched material pursuant to a mechanism that will be mutually agreed upon in accordance with the schedule mentioned in paragraph seven with the minimum methodology to be down-blended on-site under the supervision of the IAEA. The two parties also agreed to discuss the issue of enrichment and other mutually agreed matters related to the Islamic Republic of Iran’s nuclear needs, based on a satisfactory framework being agreed upon in the final deal. The final deal will confirm the provisions of this paragraph. The United States of America and the Islamic Republic of Iran acknowledge the critical importance of the nuclear issues mentioned above. They express their intention to immediately address these issues in the negotiations to achieve mutual agreement on them.
9
Pending the final deal, the United States of America and the Islamic Republic of Iran agree to maintain the status quo. The Islamic Republic of Iran will maintain the current status quo of its nuclear program, and the United States of America will not impose any new sanctions and will not deploy additional forces in the region.
10
The United States of America undertakes that immediately upon the signing of this MOU and until the termination of sanctions, the US Department of the Treasury will issue waivers for the export of Iranian crude oil, petroleum products, and derivatives, and all associated services, including banking transactions, insurance, transportation, etc.
11
The United States of America undertakes to make fully available for use the frozen or restricted funds and assets of the Islamic Republic of Iran upon the implementation of this MOU. The United States of America and the Islamic Republic of Iran will mutually agree on the procedures related to the release of these funds during negotiations. Such funds, whether retained in the original account or transferred, shall be made fully usable for payment to any ultimate beneficiary designated by the Central Bank of the Islamic Republic of Iran. The United States of America undertakes to issue all necessary licenses and authorizations accordingly.
12
The United States of America and the Islamic Republic of Iran agree that an executive mechanism will be established to monitor the successful implementation of this MOU and the future compliance of the final deal.
13
After signing this MOU, and subject to the beginning of the implementation of paragraphs 1, 4, 5, 10, and 11 of this MOU, and the continuing implementation of these measures, the United States of America and the Islamic Republic of Iran will start negotiations regarding the final deal exclusively on the other paragraphs.
14
The final deal will be endorsed by a binding UNSC resolution.
