Key facts
- President Donald Trump signed a 14-point Memorandum of Understanding (MoU) with Iran to end a conflict that began on February 28.
- The MoU aims to address Iran's nuclear program, economic sanctions, and access to the Strait of Hormuz.
- The US will terminate all sanctions against Iran on an agreed schedule, with immediate waivers for oil exports.
- A $300bn plan for Iran's reconstruction and development will be created by the US and regional partners.
- The US naval blockade of Iran will end within 30 days.
- Iran will ensure safe passage of commercial vessels through the Strait of Hormuz for 60 days, after which dialogue with Oman will define future administration.
President Donald Trump has signed a 14-point Memorandum of Understanding (MoU) with Iran, formally ending a conflict that began on February 28 with US and Israeli air strikes against Tehran. The terms of the agreement have drawn criticism for both their inclusions and omissions.
The deal aims to pave the way for talks on Iran's nuclear weapons program, economic sanctions, and access to the Strait of Hormuz. Comparisons are being drawn to the 2015 Obama-era Joint Comprehensive Plan of Action (JCPOA), which Trump previously withdrew the US from.
Under the JCPOA, Iran's nuclear program was restricted, limiting its uranium stockpile and enrichment levels, with IAEA oversight. Following the US withdrawal in 2018, Iran escalated its nuclear activities. The new MoU states Iran will not procure or develop nuclear weapons, but details on this are sparse, with discussions on enrichment and stockpiled material to be part of future negotiations. US officials suggested enriched material would be destroyed, but the MoU itself does not specify this.
Regarding missiles, Trump had previously criticized the JCPOA for not addressing Iran's ballistic missile development, but the current MoU makes no mention of this issue. Trump later stated it would be unfair for Iran not to have missiles given other regional countries possess them.
Unlike the JCPOA, which focused on sanctions relief and access to frozen assets, the new MoU includes the termination of all US sanctions against Iran on an agreed schedule. Crucially, it allows for immediate waivers for Iranian crude oil, petroleum products, and associated services, placing Iran in a stronger economic position than at the start of the conflict. Additionally, the US and regional partners plan to fund a $300 billion reconstruction and development plan for Iran.
Concerning the Strait of Hormuz, the JCPOA did not mention the waterway. Since the recent conflict began, ship transits have drastically decreased due to Iranian attacks and a US blockade. The MoU mandates the US to end its naval blockade within 30 days. Iran will ensure safe passage for commercial vessels for 60 days, after which it will engage in dialogue with Oman to define future administration and maritime services. Iran has also established a Persian Gulf Strait Authority to regulate shipping, indicating potential future fees for passage.