The US-Iran peace memorandum of understanding sets out a comprehensive framework aimed at ending the military confrontation, opening the Strait of Hormuz, releasing frozen Iranian assets, providing $300 billion for reconstruction, and opening the door to long-term negotiations.
While the agreement still requires a final agreement to be reached within 60 days, both sides will achieve significant strategic, economic and diplomatic benefits.The 14-point memorandum of understanding, which US President Donald Trump and Iranian President Masoud Pezeshkian signed virtually on Thursday, sets out a roadmap to end military hostilities, restore commercial traffic through the Strait of Hormuz and begin a 60-day negotiation process toward a final agreement on sanctions relief, economic cooperation and Iran’s nuclear program.However, the parties could still move away from the memorandum of understanding they are scheduled to sign on Friday, and upcoming talks are likely to focus on the exact sequence of steps outlined in the initial agreement, Reuters reported, citing a US official.“I think the meeting in Switzerland will be very crucial for us to really see how we get to the next stage.” They said.“It should be a situation where both parties agree on the full extent of what they will do, and then come to a sequential agreement on who will do what and when, and that is the essence of negotiations.” They added.
What will Iran gain?
Sanctions relief and economic recovery
The main gain for Tehran will be the removal of large-scale US and international sanctions. The memorandum of understanding stipulates that Washington will work to end all sanctions, including unilateral US measures and restrictions associated with the UN Security Council and the International Atomic Energy Agency.The agreement also provides for the issuance of exemptions allowing the resumption of exports of Iranian crude oil, petroleum products, and related banking, insurance and transportation services.“The United States of America pledges to end all types of sanctions imposed on the Islamic Republic of Iran, including United Nations Security Council resolutions, decisions of the International Atomic Energy Agency Board of Governors, and all unilateral US sanctions, both primary and secondary, in a timetable agreed upon as part of the final agreement.” The MOU said.For Iran, easing sanctions could open access to frozen funds, revive trade, and attract foreign investment after years of economic isolation.
Access frozen assets
Under the agreement, the United States will make frozen or restricted Iranian funds and assets available for use once the memorandum of understanding is implemented. The two sides will negotiate procedures for releasing these funds, which can then be used for payments determined by the Central Bank of Iran.This move could provide Tehran with the financial resources it desperately needs to stabilize its economy.“The United States of America undertakes to make the funds and assets frozen or restricted for use fully available to the Islamic Republic of Iran upon implementation of this Memorandum of Understanding.
The United States of America and the Islamic Republic of Iran will mutually agree on procedures related to the release of these funds during negotiations,” He said.
$300 billion for reconstruction
The memorandum of understanding includes a commitment by the United States and regional partners to develop a plan worth at least $300 billion for Iran’s reconstruction and economic development.The framework stipulates that the investment plan implementation mechanism will be finalized as part of the final transaction within 60 days.“The United States of America pledges with regional partners to develop a final, mutually agreed-upon plan in the amount of not less than $300 billion for reconstruction and economic development in the Islamic Republic of Iran. The mechanism for implementing this plan will be finalized as part of a final agreement within 60 days.” The MOU said.
Removal of the US naval blockade
The United States pledged to lift the naval blockade imposed on Iran. It also said it would withdraw its forces from the region neighboring Iran within 30 days after the final agreement.“Immediately upon signing this Memorandum of Understanding, the United States of America will begin lifting its naval blockade and any disturbances or obstructions against the Islamic Republic of Iran, and will completely end the naval blockade within 30 days. During this period, ship traffic will be proportional to the pre-war traffic numbers that the Islamic Republic of Iran will recover. The United States of America also pledges to withdraw its forces from the region adjacent to the Islamic Republic of Iran within 30 days after the final agreement.” The MOU said.
Security guarantees and reducing military pressure
Iran will benefit from both sides’ commitment to end military operations and avoid the use of force or the threat of force against each other in the future.The agreement also includes a US pledge to lift the naval blockade and end the deployment of forces near Iran after reaching the final agreement.
Nuclear negotiations Without immediate escalation
The memorandum of understanding recognizes Iran’s commitment not to develop nuclear weapons while allowing for discussions on its nuclear program, including enrichment and handling of enriched materials.Until a final agreement is reached, both sides will maintain the status quo – Iran will freeze its nuclear activities at their current level, while the United States avoids imposing new sanctions or deploying additional forces in the region.
What will the United States gain?
Restrictions on Iran’s nuclear program
One of the main goals of the United States is to ensure that Iran does not develop nuclear weapons. Under the memorandum of understanding, Tehran reaffirms that it will not seek nuclear weapons and agrees to negotiate mechanisms for dealing with its stockpile of enriched materials under the supervision of the International Atomic Energy Agency.A final agreement would also establish a framework for dealing with Iran’s enrichment activities and broader nuclear needs.“The Islamic Republic of Iran reaffirms that it will not purchase or develop nuclear weapons. The United States of America and the Islamic Republic of Iran have agreed to resolve the issue of disposal of stored enriched materials according to a mechanism that will be mutually agreed upon in accordance with the timetable mentioned in paragraph seven, provided that the minimum methodology will be mixed on site under the supervision of the International Atomic Energy Agency.” The MOU said.
Hormuz opens
The agreement includes arrangements to restore commercial shipping through the Strait of Hormuz, one of the most important energy routes in the world.Iran has committed to facilitating the safe passage of commercial ships for an initial period of 60 days while discussions continue on future maritime arrangements involving Oman and other Gulf states.“Upon signing this Memorandum of Understanding, the Islamic Republic of Iran will make the necessary arrangements using its best efforts for the safe passage of commercial ships without No fees, for 60 days only, from the Persian Gulf to the Sea of Oman and back.
Commercial ship traffic will begin immediately, and due to the need to remove technical and military obstacles, demining will be initiated by the Islamic Republic of Iran within 30 days.” The MOU said.“The Islamic Republic of Iran will engage in a dialogue with the Sultanate of Oman to determine future administration and maritime services in the Strait of Hormuz in discussion with other littoral states of the Arabian Gulf in line with applicable international law and the sovereign rights of coastal states on the Strait of Hormuz.” She added.
The diplomatic alternative to a long conflict
For Washington, the agreement creates a diplomatic channel with Tehran rather than relying solely on military pressure and sanctions.The MoU also proposes an implementation mechanism to monitor implementation and ensure adherence to the final deal.“The United States of America and the Islamic Republic of Iran agree to establish an executive mechanism to monitor the successful implementation of this Memorandum of Understanding and future compliance with the Final Agreement.” He said.
Despite the broad commitments, the agreement leaves many details to be negotiated. The two sides agreed to work toward a final agreement within 60 days, covering issues including the lifting of nuclear sanctions and restrictions, economic cooperation and security guarantees.The success of the agreement will depend on whether Washington and Tehran can move from commitments on paper to verifiable actions on the ground.