The United States and Iran have electronically signed a memorandum of understanding (MoU) to extend their ceasefire and reopen the strategic Strait of Hormuz. According to Al Jazeera, Iran’s foreign ministry spokesperson, Esmaeil Baghaei, confirmed on Wednesday, June 17, that the agreement has already taken effect.
Key Provisions of the Agreement
The deal stipulates that Iran will never seek to acquire a nuclear weapon and includes a $300 billion fund for reconstruction and economic development, though the US is not required to contribute. The Trump administration described the agreement as “performance-based,” meaning Iran benefits only if it complies with its commitments.
Full List of 14 Key Points
- Respect for Sovereignty: Both countries pledged to respect each other’s sovereignty and territorial integrity, and not to interfere in internal affairs.
- End of Naval Blockade: The US committed to begin removing its naval blockade and other restrictions on Iranian ports within 30 days.
- $300 Billion Reconstruction Plan: A reconstruction and economic development program valued at least $300 billion is proposed, funded by regional partners and private investors.
- Nuclear Commitments: Iran reaffirmed it will not develop nuclear weapons; negotiations on disposing highly enriched uranium will follow.
- Oil Export Waivers: The US will issue waivers allowing Iranian crude oil exports and related banking, insurance, and transport services.
- Compliance Monitoring: An executive mechanism will monitor implementation and compliance with the final agreement.
- UN Security Council Endorsement: The final agreement will be endorsed through a binding UN Security Council resolution.
- Immediate End to Military Operations: The US, Iran, and allies commit to an immediate and permanent end to military operations on all fronts, including Lebanon.
- 60-Day Negotiation Period: Both governments have up to 60 days to negotiate a final agreement, extendable by mutual consent.
- Reopening the Strait of Hormuz: Iran agreed to facilitate safe passage of commercial vessels without transit fees, working with Oman and Gulf states on long-term navigation management.
- Sanctions Relief: The US agreed in principle to terminate sanctions, with the timetable linked to Iran’s nuclear compliance.
- Maintaining Status Quo: Until a final agreement, Iran will not expand its nuclear program, and the US will not impose new sanctions or deploy more forces.
- Release of Frozen Assets: Iranian funds and assets frozen abroad will be released, with procedures determined in subsequent negotiations.
- Framework for Permanent Agreement: Once key provisions are implemented, negotiations on remaining sections of the final agreement will begin.
The agreement comes four months after hostilities involving Iran, the US, and Israel. The UAE has also agreed to unlock billions of dollars for Iran as part of de-escalation efforts, coinciding with broader negotiations between Tehran and Washington.
