US–Iran Memorandum of Understanding: 14 Key Points Explained
President Donald Trump and Iranian President Masoud P"ezeshkian signed a memorandum of understanding (MoU) at the Palace of Versailles, marking a new chapter in US‑Iran relations. The agreement aims to end the conflict that flared in February and to pave the way for a longer‑term settlement.
Point 1: Immediate End to Conflict on All Fronts
The MoU calls for an “immediate and permanent” cessation of military actions by the US, Iran and their allies, including the cessation of hostilities in Lebanon. It sets the stage for a lasting peace once the parties comply with the subsequent points.
Point 2: Respecting Internal Affairs
Both sides pledge to respect each other's sovereignty and refrain from interfering in internal politics. This is a significant concession, especially for Iranian dissidents who had previously hoped for US support.
Point 3: 60‑Day Negotiation Window
After signing, both sides have 60 days to negotiate a final, binding deal—extendable only with mutual consent. The countdown began the night Trump sealed the MoU.
Point 4: Ending the US Naval Blockade
Within 30 days of the MoU, the US will lift its naval blockade of Iranian ports and remove “disturbances or impediments.” This also includes withdrawal of forces from the Iranian front, returning to pre‑hostilities posture.
Point 5: Strait of Hormuz to Reopen
Iran must use its best efforts to reopen the Strait of Hormuz without charges, ensuring safe passage for commercial vessels immediately while clearing technical and military obstacles.
Point 6: $300 bn Reconstruction Fund
A plan worth at least $300 bn (about £224 bn) will be devised by the US and regional partners for Iran’s reconstruction and economic development. The US will not contribute money but will supply licenses, waivers and permissions.
Point 7: Sanctions Relief
All US sanctions on Iran—including those tied to UN resolutions—will be terminated, though the exact timeline is to be agreed in the final deal. The lift is contingent on Iran meeting future obligations.
Point 8: No Nuclear Weapons
Iran commits to not acquire or develop a nuclear weapon and will hand over its enriched uranium to be downblended under IAEA supervision.
Points 9 & 10: Status Quo of Nuclear Programme
For the time being, the US will issue waivers to oil, petroleum products and related services while maintaining a status quo on Iran’s nuclear program.
Point 11: Release of Frozen Assets
The US will make frozen and restricted funds fully available once the MoU is signed, with procedures to be finalized in negotiations.
Points 12–14: Monitoring & Final Deal
Both parties will set up a monitoring mechanism for implementation and compliance. After the MoU, negotiations will lead to a final deal, endorsed by a UN Security Council resolution.
The MoU, while this week still in draft, rests on a performance‑based framework. It recognizes significant concessions made by both sides and lays a clear, albeit unresolved, road to a lasting settlement.
