The United States and Iran have entered into a memorandum of understanding that includes reopening the Strait of Hormuz and working toward a broader agreement on a range of unresolved issues. The document took effect on Wednesday following digital signatures from both nations.
President Donald Trump described the development as a significant achievement for the United States during an extended media briefing at the G7 summit, hosted in France. Officials from both governments later verified that the memorandum had been signed electronically and was officially active as of Wednesday.
Here is the full text of the 14-point Memorandum of Understanding with Iran:
- The US, Iran, and their allies agree to immediately and permanently end military operations on all fronts, including in Lebanon
- The US and Iran agree to respect each other’s sovereignty and territorial integrity and not interfere in each other’s internal affairs
- The US and Iran commit to negotiating and reaching a final deal within 60 days, unless mutually extended
- The US will begin removing its naval blockade immediately and fully end the blockade within 30 days
- Iran will use its best efforts to ensure safe passage for commercial vessels through the Strait of Hormuz for 60 days with no charge
- The US and regional partners will develop a mutually agreed plan of at least $300 billion for Iran’s reconstruction and economic development
- The US will work toward terminating all types of sanctions against Iran, including UN, IAEA, primary, and secondary sanctions
- Iran reaffirms that it will not procure or develop nuclear weapons and agrees to address its enriched material stockpile under IAEA supervision
- Until a final deal is reached, Iran will maintain the current status quo of its nuclear program, while the US will impose no new sanctions and deploy no additional forces
- The US Treasury will issue waivers for Iranian crude oil, petroleum products, derivatives, and associated banking, insurance, and transportation services
- The US will make frozen or restricted Iranian funds and assets fully available for use
- The US and Iran will establish an executive mechanism to monitor implementation of the MOU and future compliance with the final deal
- After signing the MOU and implementing key ceasefire, blockade, shipping, oil waiver, and asset-release provisions, the US and Iran will begin final deal negotiations
- The final deal will be endorsed by a binding UN Security Council resolution
Despite the agreement, President Trump issued strong warnings, stating that US military action could resume and Iranian officials could be targeted if Iran failed to meet its obligations under the new understanding.
The announcement led to a dip in oil prices, with hopes for increased security at the Strait of Hormuz contributing to a decline in Brent crude futures. Prices dropped below $80 per barrel, marking the lowest point since hostilities between the two countries began.
