Washington, June 18: The United States and Iran have signed a 14-point Memorandum of Understanding (MoU) aimed at ending military hostilities, reopening the Strait of Hormuz, and initiating a 60-day process to negotiate a final agreement on sanctions relief and Iran’s nuclear programme.
According to reports, US President Donald Trump and Iranian President Masoud Pezeshkian signed the agreement virtually on Wednesday. The memorandum came into effect immediately after its signing.
The agreement, referred to as the “Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran,” outlines a framework for de-escalation and future negotiations between the two countries.
A senior US administration official said the MoU provides for the immediate reopening of the Strait of Hormuz, addresses Iran’s stockpile of enriched uranium, and establishes a mechanism linking phased sanctions relief to Iranian compliance with the terms of the agreement.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei confirmed that the memorandum had been finalised and signed by both sides. He stated that consultations involving Oman and other countries had contributed to the agreement and that arrangements regarding the management of the Strait of Hormuz had largely been settled.
Under the memorandum, Iran will facilitate the safe passage of commercial vessels through the Strait of Hormuz free of charge for an initial period of 60 days, while the United States will begin lifting naval restrictions and related measures.
The agreement also includes an immediate and permanent cessation of military operations, including activities linked to Lebanon, and commits both sides to concluding negotiations on a final settlement within 60 days, with the option of extension by mutual consent.
The MoU further provides for the phased removal of sanctions, the release of frozen Iranian assets, Treasury waivers for Iranian oil exports, and a US-backed economic development and reconstruction programme for Iran valued at no less than USD 300 billion.
Iran has also reaffirmed its commitment not to develop or acquire nuclear weapons. The future of Iran’s enriched uranium stockpiles will be discussed under the supervision of the International Atomic Energy Agency (IAEA) as part of the ongoing negotiations.
The agreement is also expected to serve as a framework for discussions on broader regional security issues, including arrangements involving Israel and Hezbollah during the negotiation period.