The Trump administration has announced an interim peace deal with Iran, dubbed the "Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran," aimed at reopening the Strait of Hormuz and deferring further hostilities. This agreement allows Iran to immediately restart oil exports through US sanctions waivers and potentially gain access to a $300 billion development program during negotiations for a permanent peace, as well as unfreezing funds held in various countries, provided it meets specific criteria.
This 14-point document, officially released by the US, details the immediate and permanent termination of military operations on all fronts, including in Lebanon, and commits both sides to refraining from the threat or use of force. It also includes provisions for the US to lift its naval blockade within 30 days and to work with regional partners to develop the $300 billion reconstruction and economic development plan for Iran. The US Treasury Department will issue waivers for Iranian crude oil exports and associated services immediately upon signing the MOU.
The memorandum sets a 60-day window for negotiating a final deal, which will be formally signed in Switzerland, and is extendable by mutual consent. A key inclusion in the final text, not present in earlier drafts, is a "minimum methodology" for neutralizing Iran's stockpile of highly enriched uranium, specifically involving down-blending near-bomb-grade uranium with lower-grade material under International Atomic Energy Agency oversight. This addresses concerns about Iran's nuclear program, which still includes approximately 400 kilograms of 60%-enriched uranium after recent military strikes.
According to Iranian government estimates, the 40-day war caused losses of around $270 billion. The $300 billion reconstruction plan, while spearheaded by the US, President Trump has indicated that the American Treasury will not contribute directly, with hopes that Gulf states will finance it alongside the release of Iran's frozen assets. Sanctions relief for Iran will follow an agreed-upon timetable and will include the removal of punitive measures imposed by the UN Security Council and the IAEA Board of Governors. The final agreement will be approved by a binding resolution of the UN Security Council.
