The US and Iran have signed a Memorandum of Understanding (MoU) to end military operations, reopen the Strait of Hormuz, and initiate a 60-day negotiation period for a final peace agreement. President Donald Trump formally signed the deal at a post-G7 dinner in France, following an earlier digital signing on June 14 by Vice-President J.D. Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf. The MoU, which is now in effect, aims to address the conflict that erupted four months prior, involving both nations and Israel.
Key provisions of the 14-point agreement include Iran's commitment to never possess a nuclear weapon, though the text primarily focuses on downblending its enriched uranium stockpile under IAEA supervision, rather than a complete halt to development. The US will lift its naval blockade on Iranian ports within 30 days, while Iran will ensure safe, toll-free passage for commercial vessels through the Strait of Hormuz for 60 days. The deal also outlines a mechanism for a $300 billion fund for Iran's reconstruction and economic development, which regional partners will help develop, with the US not explicitly required to contribute financially.
While the MoU immediately reopens the Strait of Hormuz, allowing for Iranian oil exports without sanctions waivers, it leaves the most contentious issues for the 60-day negotiation period. This includes the full technical details of managing Iran's enriched uranium and the final scope of economic relief. Analysts from Bloomberg Economics, Dina Esfandiary and Ziad Daoud, describe the interim deal as an exchange where Tehran gains significant new economic benefits, while Washington largely recovers pre-war advantages.
