Key facts
- The US and Iran signed the Islamabad Memorandum of Understanding (MoU) to end a conflict that began in late February.
- The MoU facilitates the reopening of the Strait of Hormuz for 60 days, allowing safe passage of commercial vessels without charge.
- The US will dismantle its naval blockade and begin removing it, with full withdrawal planned within 30 days of signing.
- The agreement outlines the termination of all sanctions against Iran in an agreed schedule as part of a final deal.
- The US has committed to releasing Iran's frozen assets and providing at least $300 billion for reconstruction, though investment is expected from other countries.
- A permanent termination of military operations on all fronts, including Lebanon, is stipulated in the agreement.
- Discussions on Iran's nuclear program and the full resolution of sanctions have been postponed to a 60-day negotiating period.
The United States and Iran have signed a ceasefire memorandum of understanding (MoU), known as the Islamabad Memorandum of Understanding, to end a conflict that has significantly impacted the Middle East since late February. The deal, signed by US President Donald Trump and Iranian President Masoud Pezeshkian, aims to de-escalate tensions and restart economic activity.
Key provisions of the 14-point document include the reopening of the Strait of Hormuz for 60 days, during which Iran will ensure the safe passage of commercial vessels without charge. This waterway is critical, as approximately one-fifth of global oil shipments pass through it. The US has also committed to dismantling its naval blockade and withdrawing its forces within 30 days of the signing. Furthermore, the MoU outlines the termination of all types of sanctions against Iran, including UN Security Council and unilateral US sanctions, to be implemented in an agreed schedule as part of a final deal. The US has also pledged to release Iran's frozen assets and provide at least $300 billion for reconstruction and economic development, although the White House has indicated that other countries would be invited to invest rather than the US directly.
The agreement also stipulates an immediate and permanent termination of military operations on all fronts, specifically mentioning Lebanon. However, the deal does not directly involve Israel, which has expanded its operations in southern Lebanon. Israeli officials, including National Security Minister Itamar Ben Gvir and Defence Minister Israel Katz, have stated that the agreement does not bind Israel and that its security interests must be safeguarded, including the dismantling of Hezbollah. President Trump has criticized Israel's conduct in Lebanon.
Crucially, negotiations on the most contentious issues, such as Iran's nuclear program and the full scope of sanctions relief, have been deferred. The MoU states that the disposition of stockpiled enriched material will be resolved through a mutually agreed-upon mechanism, with a satisfactory framework to be agreed upon in the final deal. Talks on these matters are set to occur over a 60-day period, which can be extended by mutual consent. However, Vice President JD Vance's travel to Switzerland for these negotiations was postponed due to unpredictable logistics.