US President Donald Trump and Iranian President Massoud Pezeshkian have virtually signed a 14-point memorandum of understanding (MOU) aimed at ending hostilities between the two countries, reopening the Strait of Hormuz and starting negotiations on sanctions relief and a comprehensive agreement covering Iran’s nuclear programme.Trump signed the memorandum during a meeting with French President Emmanuel Macron in Paris on Wednesday, while Pezeshkian also signed the document. The agreement went into effect immediately after it was signed by both parties, CNN reports. The development is an important step towards reducing tensions in the region following several months of heightened tensions and military confrontation with Iran, Israel and the United States.The memorandum, known as the ‘Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran’, sets out a framework for negotiations on a ceasefire, economic cooperation, sanctions relief and Tehran’s nuclear activities.Confirming the development, Trump told reporters that the agreement was signed during his visit to Paris.“It’s been signed. It’s been signed at Versailles, I just signed it,” Trump said.A senior US administration official described the agreement as a mechanism to immediately reopen the Strait of Hormuz, address concerns surrounding Iran’s rich uranium reserves and create a path for economic engagement.“It’s basically an agreement that allows us to immediately open the Strait of Hormuz, get the Iranians to commit to eliminating nuclear dust, and then gives us a dial where if the Iranians dial up their good behavior, we respond by giving them the kind of economic and sanctions relief that could make them a more prosperous country,” the official said.Iran also ratified the agreement. Iranian Foreign Ministry spokesman Esmail Baghai said that consultations with Oman and other countries had been going on for some time and arrangements related to navigation through the Strait of Hormuz had been largely finalized.Baghai said that safe sea routes will be guaranteed while maintaining Iran’s rights over strategic waterways.“It was agreed that the Iran-US MoU will be signed digitally. “The memorandum is now officially finalized as both parties have signed it.”He said the agreement would ‘ensure the sovereignty and authority of the Islamic Republic of Iran over the Strait of Hormuz.’
What’s included in the deal
The 14-point agreement provides for an immediate and permanent cessation of military operations between the parties and commits both sides to conclude negotiations on a final agreement within 60 days. If both the governments agree then the deadline can be extended.The memorandum also includes provisions for reopening the Strait of Hormuz, one of the world’s most important energy shipping routes, through which a significant portion of the global oil supply passes.Under the arrangement, Iran will facilitate the safe passage of commercial vessels through the strait for an initial period of 60 days. In return, the United States will begin to lift sanctions associated with its naval blockade and related measures.The agreement outlines a phased process for sanctions relief, including Treasury waivers for Iranian oil exports and the gradual release of frozen Iranian assets.One of the most significant provisions is a proposed US-backed reconstruction and economic development program for Iran worth at least US$300 billion.The memorandum also addressed concerns over Iran’s nuclear program. Tehran has confirmed it will not develop or acquire nuclear weapons, while the future of its enriched uranium reserves will be discussed under the supervision of the International Atomic Energy Agency (IAEA), Press TV reports. According to prior Fox News reports, the broader framework also includes negotiations on Iran’s uranium enrichment activities as well as a structured ceasefire arrangement involving Israel and Hezbollah.
What are the 14 points?
According to the text released by the White House, the 14-points of the deal are:
- The United States of America and the Islamic Republic of Iran and their allies in the present war, by signing this Memorandum of Understanding, declare the immediate and permanent cessation of military operations on all fronts, including Lebanon, and undertake not to wage any war or any military operation against each other henceforth and to refrain from the threat or use of force against each other and to ensure the territorial integrity and sovereignty of Lebanon. The final agreement will confirm a permanent end to the war on all fronts, including in Lebanon, and the other provisions of this paragraph.
- The United States and the Islamic Republic of Iran pledge to respect each other’s sovereignty and territorial integrity and to refrain from interfering in each other’s internal affairs.
- The United States and the Islamic Republic of Iran commit to negotiate and achieve a mutually agreed final agreement within a maximum of 60 days.
- Immediately after the signing of this MOU, the United States will begin to lift its naval blockade and any interference or obstruction 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 pre-war traffic numbers being restored by the Islamic Republic of Iran. The United States has pledged to remove its troops from proximity to the Islamic Republic of Iran within 30 days of the final agreement.
- Upon signing of this MOU, the Islamic Republic of Iran will arrange, using its best efforts, for the safe passage of commercial vessels from the Persian Gulf to the Sea of Oman without any duty for 60 days only, and vice versa. Commercial vessel traffic will begin immediately, and mining will begin within 30 days, subject to the need to overcome technical and military barriers by the Islamic Republic of Iran. The Islamic Republic of Iran will negotiate with the Sultanate of Oman to define the future governance and maritime services in the Strait of Hormuz through discussions with other Persian Gulf or coastal States in line with applicable international law and the sovereign rights of the coastal States of the Strait of Hormuz.
- The United States is working with regional partners to develop a definitive, mutually agreed upon plan of at least US$300 billion for the reconstruction and economic development of the Islamic Republic of Iran. The mechanism for implementation of the scheme will be finalized as part of the final deal within 60 days. All necessary licenses, exemptions and permissions required for the relevant financial transactions will be provided by the United States.
- The United States undertakes to end all forms of sanctions against the Islamic Republic of Iran, including United Nations Security Council resolutions, i.e. Board of Governors resolutions, and all unilateral U.S. sanctions, primary and secondary, in an agreed upon program as part of the final agreement. The Islamic Republic of Iran and the United States recognize the vital importance of the sanctions expiration issue outlined above, and have expressed their intentions to promptly address these issues in negotiations to achieve mutual agreement on them.
- The Islamic Republic of Iran has confirmed 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 disposal of stockpile enriched material in accordance with a mechanism to be mutually agreed upon in accordance with the schedule set forth in article seven, with a minimum method of decommissioning the mixture on site under the supervision of the IAEA. Both sides also agreed to discuss the issue of enrichment and other mutually agreed matters related to the nuclear needs of the Islamic Republic of Iran, on the basis of a satisfactory framework agreed upon in the final agreement. The final deal will ratify the provisions of this article. The United States and the Islamic Republic of Iran recognize the critical importance of the above-mentioned nuclear issues and express their intention to promptly address these issues in negotiations to achieve mutual agreement on them.
- Until a final agreement is reached, the United States and the Islamic Republic of Iran have agreed to maintain the status quo. The Islamic Republic of Iran will maintain the current status quo of its nuclear program and the United States will not impose any new sanctions or deploy additional forces to the region.
- The United States undertakes that immediately after the signing of the MOU until the expiration of the sanctions, the US Treasury Department will issue waivers for the export of Iranian crude oil, petroleum products and derivatives and all related services including banking transactions, insurance, transportation, etc.
- The United States commits to make the frozen or restricted funds and assets of the Islamic Republic of Iran fully available for use. Upon implementation of this MOU, the United States and the Islamic Republic of Iran will mutually agree upon procedures related to the release of these funds during negotiations. Such funds, whether held in the original account or transferred, shall be made fully usable for payment to any ultimate beneficiary as designed by the Central Bank of the Islamic Republic of Iran. The United States undertakes to issue all necessary licenses and authorizations accordingly.
- The United States and the Islamic Republic of Iran agree that an executive mechanism will be established to monitor the successful implementation of this Memorandum of Understanding and future compliance with the final deal.
- Following the signing of this MOU, and subject to the beginning of implementation of paragraphs 1, 4, 5, 10, and 11 of the MOU and the continued implementation of these measures, the United States and the Islamic Republic of Iran will begin negotiations regarding a final agreement, specifically on the other paragraphs.
- The final deal will have to be approved by a binding UNSC resolution.
why it matters
The reopening of the Strait of Hormuz is considered one of the most important aspects of the agreement. The strategic waterway carries a large share of the world’s oil shipments, and any disruption has an immediate impact on global energy markets.The memorandum is being seen as an effort to ease regional tensions, restore commercial shipping through the Gulf and establish a path toward a comprehensive diplomatic agreement between Washington and Tehran.If successfully implemented, this memorandum could be one of the most significant diplomatic breakthroughs between the United States and Iran in recent years, reducing regional tensions while opening the door to renewed engagement on sanctions relief, economic cooperation, and nuclear issues.