A Memorandum of Understanding (MOU) between the US and Iran outlines several key provisions. These include a 60-day ceasefire, during which broader negotiations are expected to take place. A central element of the deal is the reopening of the Strait of Hormuz, with Iran agreeing to restore movement through the waterway to pre-war levels. The US has committed to removing its naval blockade on Iran.
The agreement also addresses financial aspects, with the US unblocking $24 billion of Iran's frozen assets. Furthermore, oil sanctions on Iran are to be lifted, granting Tehran the right to immediately sell its oil and eventually access these assets. The deal also includes provisions for an end to hostilities in Lebanon and the withdrawal of US troops from the region within 30 days.
While a near-final draft of the 14-provision MOU has been seen by Bloomberg News, a formal recognition is still pending. President Trump confirmed on Sunday that talks would begin on Monday after he called off planned strikes. He indicated that Iran and other Middle Eastern countries had requested he hold off on the attack, stating that "the perimeters of a deal has been agreed to." However, an Iranian Foreign Ministry spokesman, Esmail Baghaei, later contradicted this, stating there was no immediate plan for negotiations.
The physical movement of ships through the Strait of Hormuz is expected to reopen immediately on Friday, reaching 80% capacity within two months. Qatar Energy, a major LNG exporter, has indicated it will rapidly increase shipments once the strait reopens. Despite the proposed agreements, some analysts believe it could take weeks, if not months, for shipping to return to normal levels.
